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  • 1
    Publication Date: 2016-09-20
    Description: Understanding industry agglomeration and its driving forces is critical for the formulation of industrial policy in developing countries. Crucial to this process is the definition and measurement of agglomeration. We construct a new coagglomeration index based purely on the location of firms. We examine what this index reveals about the importance of transport costs, labour market pooling and technology transfer for agglomeration processes, controlling for overall industry agglomeration. We compare the results based on our new measure to existing measures in the literature and find very different underlying stories at work. We conclude that in conducting analyses of this kind giving consideration to the source of agglomeration economies, employees or entrepreneurs, and finding an appropriate measure for agglomeration, are both crucial to the process of identifying agglomerative forces.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L60 - General, O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology, O33 - Technological Change: Choices and Consequences ; Diffusion Processes
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
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  • 2
    Publication Date: 2016-09-20
    Description: The idea that local social capital yields economic benefits is fundamental to theories of agglomeration, and central to claims about the virtues of cities. However, this relationship has not been evaluated using methods that permit confident statements about causality. This article examines what happens to firms that become affiliated with ‘dealmakers’—individuals who are unusually well connected in local social networks. We adopt a quasi-experimental approach, which examines firms that added exactly one new individual to their firm, combining difference-in-differences and propensity score matching to address selection and\ identification challenges. The results indicate that when compared to a control group, firms which link to a dealmaker are rewarded with substantial gains in employment and sales.
    Keywords: L14 - Transactional Relationships ; Contracts and Reputation ; Networks, O12 - Microeconomic Analyses of Economic Development, O18 - Regional, Urban, and Rural Analyses, R11 - Regional Economic Activity: Growth, Development, and Changes
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
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  • 3
    Publication Date: 2015-04-14
    Description: In this article, I reassess the undeserved reputation of Inditex’s Zara as a ‘home-sewn exception to globalization’ for supposedly keeping manufacturing at home despite larger trends; and I use the occasion to make a case for rigorous, evidentially strong single-firm case studies. In the process, I draw attention to the manner in which the value-adding qualities of scholarly work are being judged in economic geography; and argue that the prioritization of novelty over unenhanced readings of realities may encourage case studies to be presented as more unique and exceptional than they actually are.
    Keywords: D21 - Firm Behavior, F23 - Multinational Firms ; International Business, L14 - Transactional Relationships ; Contracts and Reputation ; Networks, L25 - Firm Performance: Size, Diversification, and Scope, L67 - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather
    Print ISSN: 1468-2702
    Electronic ISSN: 1468-2710
    Topics: Geography , Economics
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