Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/50695 
Authors: 
Year of Publication: 
2008
Series/Report no.: 
Manchester Business School Working Paper No. 560
Publisher: 
The University of Manchester, Manchester Business School, Manchester
Abstract: 
This paper explores the sources of agglomeration externalities in enhancing firm performance, in particular, the pecuniary externality that supports firms' bottom line. The fundamental argument on increasing returns leads to the premise that cluster size has beneficial influence to firm performance. However, recent arguments suggest that diseconomies may set in and the agglomeration of related sectors in a cluster lead to congestion that is detrimental to firm performance. The enigmatic pecuniary externality is under-researched but often discussed. In this research, the role of related sectors in boosting the member firm's financial performance is revealed through a cross-section data of some 17,000 financial services companies in the UK.
Subjects: 
financial services
externalities
industry cluster
UK regions and competitiveness
Document Type: 
Working Paper

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