Identifying Agglomeration Spillovers
Evidence from Winners and Losers of Large Plant Openings
Bibliographic Data
| ID | 10179205 |
|---|---|
| Authors | Madison Greenstone (0000-0002-2364-2810, Massachusetts Institute of Technology), Michael Greenstone, Richard Hornbeck (Harvard University Press), Enrico Moretti (0000-0002-5124-9741, University of California, Berkeley) |
| Year | 2010 |
| Volume | 118 |
| Issue | 3 |
| Pages | 536-598 |
| Publication date | 2010-06-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/653714 |
| OpenAlex | W2205690021 |
| Language | EN |
| Citations received | 209 |
| References cited | 33 |
We quantify agglomeration spillovers by comparing changes in total factor productivity (TFP) among incumbent plants in "winning" counties that attracted a large manufacturing plant and "losing" counties that were the new plant's runner-up choice. Winning and losing counties have similar trends in TFP prior to the new plant opening. Five years after the opening, incumbent plants' TFP is 12 percent higher in winning counties. This productivity spillover is larger for plants sharing similar labor and technology pools with the new plant. Consistent with spatial equilibrium models, labor costs increase in winning counties, indicating that profits ultimately increase less than productivity. (c) 2010 by The University of Chicago. All rights reserved
Agricultural economics · Economic geography · Economics · Economies of agglomeration · Labour economics · Macroeconomics · Microeconomics · Productivity · Spillover effect · Total factor productivity · Fiscal Policy and Economic Growth · Regional Economics and Spatial Analysis · Spatial and Panel Data Analysis
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| Unique citing works | 209 |
|---|---|
| Citations per year | 6,53 |
| Citation span | 1994 - 2027 (34) |
| Citation velocity | recent |
| Highly cited | Yes |
| Citation types | Neutral: 204 |