clearly affects how agglomeration economies
2010), a rare example of other work that assesses the scale of agglomeration economies
in Canada, which found that individuals living in regions with large populations have wages about 3 to 5 percent higher than people in regions with smaller populations, approximately on the same scale as that elsewhere in the world.
2008: Sectoral agglomeration economies
in a panel of European regions.
Carlino suggests, therefore, that consumer agglomeration economies
can serve as an indicator of future growth for cities.
New' new economic geography: firm heterogeneity and agglomeration economies
, Journal of Economic Geography, Vol.
This occurrence under agglomeration economies
brings a positive relationship to FDI since the experience of one foreign company in the host country can be shared to those intending to invest in that country.
In effect, agglomeration economies
reduce firms' production costs and accelerate innovation, but the concentration they beget also reduces the cost of organizing and enforcing cartels of labor.
The result of these agglomeration economies
is that many aspects of the current phase of globalisation can more accurately be described as 'global regionalism' (Rugman, 2005), whereby countries within the same individual super-region are becoming more closely integrated with respect to one another, relative to other countries.
He found cost of living to be a positive function of population density (the number of persons per square mile) because greater congestion will increase transit and marketing costs; a negative function of population as increased population will lead to agglomeration economies
which will decrease production costs and hence cost of living; a negative function of property tax/tax on capital as it will lead to bias towards labor intensive technology and hence the potential benefits of economies of scale will not be realised and also tax might be passed on from producers to consumers in the form of higher prices; a negative relationship with a dummy for legislation prohibiting trade union activity--will lead to lower costs of production and hence lower prices.
5) However, agglomeration economies
can equally exist for nonprofit firms.
Unfortunately, identifying such areas is very difficult; for example, the authors find little evidence that agglomeration economies
are more important for smaller cities than for larger cities, or for more compact cities than for less compact cities.
This study compares the spatial patterns of finance, insurance and real estate firm concentration at inter-urban (for urban areas across Canada) and intra-urban (for the Toronto census metropolitan area) scales and attempts to ascertain to what extent agglomeration economies
advantages are contributing to the spatial arrangement of these firms.
This hypothesis is an outgrowth of agglomeration theory, which suggests that firms and industries will benefit from the agglomeration economies
that clusters generate.
Rosenthal and Strange consider the relationship between local industrial organization and agglomeration economies
The results obtained by Rosenthal and Strange provide fresh evidence on the importance of very local agglomeration economies
to sustained growth.