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Agglomeration Economies: Different Effects on TFP in High-tech and Low-tech Industries

Referierte Aufsätze Web of Science

Martin Gornig, Alexander Schiersch

In: Regional Studies (2024), im Ersch. [online first: 2024-04-04]


We study the impact of agglomeration effects on firms’ total factor productivity (TFP) for industry groups defined by technology intensity. This allows for non-uniform effects on firms depending on their technological level. We find that urban economies have the largest impact on firm productivity in high-technology industries, while they have no effectin low-technology industries. For firms in the latter industries, the diversity of the local economic structure is relevant. Localisation effects have a consistently positive and significant impact on TFP, with the effect increasing with the technology intensity of the industries.

Alexander Schiersch

Research Associate in the Firms and Markets Department

Martin Gornig

Research Director in the Firms and Markets Department

JEL-Classification: R11;R12;R15;D24
Keywords: Total factor productivity; manufacturing firms; control function approach; agglomeration economies; spatial concentration