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WP/084 Measuring Industry Agglomeration and Identifying the Driving Forces

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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 propose a new measure and examine what it reveals about the importance of transport costs, labour market pooling, and technology transfer for agglomeration processes. We contrast this analysis with insights from existing measures in the literature and find very different underlying stories at work. An exceptionally rich set of data from Vietnam makes us confident that our measure is superior at least in developing country contexts.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/84
Title:
WP/084 Measuring Industry Agglomeration and Identifying the Driving Forces
Authors:
Emma Howard, Carol Newman, and Finn Tarp
Publication date:
October 2012
ISBN 13 Web:
978-92-9230-548-2
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
industry agglomeration, technology spillovers, labour market pooling, Vietnam
JEL:
L14, L60, O14, O33
Project:
Learning to Compete (L2C): Accelerating Industrial Development in Africa
Sponsor:
UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online
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