Skip navigation

Competitors, Complementors, Parents and Place: Explaining Regional Agglomeration in the U.S. Auto Industry

Authors: Cabral, Luis
Wang, Zhu
Xu, Daniel Yi
Keywords: local externalities; employee spinouts; industry agglomeration
Issue Date: 10-Apr-2013
Abstract: Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry spillovers, particularly the development of the carriage and wagon industry, play an important role. Spinouts play a secondary role and only contribute to agglomeration at later stages of industry evolution. The presence of other firms in the same industry has a negligible (or maybe even negative) effect on agglomeration. Finally, location fixed-effects account for some agglomeration, though to a lesser extent than inter-industry spillovers and spinouts.
Rights: Copyright Cabral, Wang, and Xu, April 2013.
Appears in Collections:Economics Working Papers

Files in This Item:
File Description SizeFormat 
Cabral_ExplainingRegionalAgglomeration_Apr2013.pdfExplaining Regional Agglomeration in the U.S. Auto Industry394.45 kBAdobe PDFView/Open

Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.