Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/124195 
Year of Publication: 
2014
Series/Report no.: 
54th Congress of the European Regional Science Association: "Regional development & globalisation: Best practices", 26-29 August 2014, St. Petersburg, Russia
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
We study the determinants of agglomeration of Canadian manufacturing industries from 1990 to 2009. In so doing, we revisit the seminal contribution by Rosenthal and Strange (2001, "The determinants of agglomeration", J Urban Econ 50(2), 191?229) using a long panel and continuous measures of localization. We pay particular attention to the role of transporation costs ? constructed using extensive Canadian trucking microdata ? international trade exposure, and input sharing ? constructed using micro-geographic location patterns of plants. We find that between 1990 and 2009, industry localization has persistently fallen. The average degree of localization decreased by 36% within 10km, by 22.6% within 100km, and by 11.3% within 500km. Declining localization is associated with import competition, particularly from low wage countries, increasing transportation costs and the spreading out of upstream input suppliers and downstream demand for intermediate inputs. While we find strong evidence of trade-driven changes in localization, we find less evidence for knowledge spillovers and labour market pooling as drivers in changes in localization.
JEL: 
R12
R30
L11
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.