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The economic microgeography of diversity and specialization externalities – firm-level evidence from Swedish cities
Blekinge Tekniska Högskola, Karlskrona, Sweden.
Jönköping University, Jönköping International Business School, JIBS, Economics. Jönköping University, Jönköping International Business School, JIBS, Centre for Entrepreneurship and Spatial Economics (CEnSE). Department of Land Economy, University of Cambridge, United Kingdom.ORCID iD: 0000-0001-7432-7442
Swedish Entreprenurship Fourm and CIRCLE, Lund University, Sweden.
2019 (English)In: Research Policy, ISSN 0048-7333, E-ISSN 1873-7625, Vol. 48, no 6, p. 1385-1398Article in journal (Refereed) Published
Abstract [en]

We employ finely geo-coded firm-level panel data to assess the long-standing question whether agglomeration economies derive from specialization (within-industry), diversity (between-industry) or overall density. Rather than treating the city as a single unit, we focus our analysis on how the inner industry structures of cities influence firm-level productivity. Our results illustrate the co-existence of several externalities that differ in their spatial distribution and attenuation within cities. First, we find robust positive effects of neighborhood-level specialization on TFP as well as a small effect of diversity at the same fine spatial level. These effects are highly localized and dissipate beyond the immediate within-city neighborhood level. Second, we also find that firms benefit from the overall density of the wider city. The results emphasize the relevance of “opening up” cities to study the workings of their inner organization and support the idea that location in a within-city industry cluster in a diversified and dense city boosts productivity. 

Place, publisher, year, edition, pages
Elsevier, 2019. Vol. 48, no 6, p. 1385-1398
Keywords [en]
Agglomeration economies, Attenuation, Diversity, Externalities, Geocoding, Knowledge spillovers, Productivity, Specialization, Agglomeration, Geo coding, Industrial economics
National Category
Economic Geography
Identifiers
URN: urn:nbn:se:hj:diva-43363DOI: 10.1016/j.respol.2019.02.003ISI: 000466619400006Scopus ID: 2-s2.0-85061793039OAI: oai:DiVA.org:hj-43363DiVA, id: diva2:1297956
Available from: 2019-03-21 Created: 2019-03-21 Last updated: 2019-05-29Bibliographically approved

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Larsson, Johan P.

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