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Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry / Luís Cabral, Zhu Wang, Daniel Yi Xu.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Cabral, Luís.
Contributor:
National Bureau of Economic Research.
Wang, Zhu.
Xu, Daniel Yi.
Series:
Working Paper Series (National Bureau of Economic Research) no. w18973.
NBER working paper series no. w18973
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2013.
Summary:
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 work as a special type of intra-industry spillovers. The presence of other firms in the same industry has a negligible (or even negative) effect. Finally, local inputs account for some agglomeration in the short run, but the effects are much more profound in the long run.
Notes:
Print version record
April 2013.

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