More similar firms — More similar regions? On the role of firm heterogeneity for agglomeration

von Ehrlich, Maximilian; Seidel, Tobias (2013). More similar firms — More similar regions? On the role of firm heterogeneity for agglomeration. Regional science and urban economics, 43(3), pp. 539-548. Elsevier 10.1016/j.regsciurbeco.2013.02.007

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In contrast to what several papers have argued recently, we show that firm heterogeneity fosters agglomeration of economic activity. If firms are more similar with respect to their total factor productivity, each company faces a lower propensity to export. This renders the home market more important speaking against agglomeration. We also relate changes in firm heterogeneity to technological progress which allows us to derive novel insights on the role of technology for the location of economicactivity.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics > Public Economics
11 Centers of Competence > Center for Regional Economic Development (CRED)

UniBE Contributor:

von Ehrlich, Maximilian

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

0166-0462

Publisher:

Elsevier

Language:

English

Submitter:

Simon Büchler

Date Deposited:

26 Jul 2017 14:37

Last Modified:

11 Sep 2017 08:28

Publisher DOI:

10.1016/j.regsciurbeco.2013.02.007

Additional Information:

JEL classification: F12; F22; R12

Uncontrolled Keywords:

Firm heterogeneity; agglomeration; technological change; trade; labor mobility

BORIS DOI:

10.7892/boris.83853

URI:

https://boris.unibe.ch/id/eprint/83853

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