Spatial Localization in Manufacturing: A Cross-Country Analysis

Stefania Vitali, Mauro Napoletano, Stefania Vitali, Giorgio Fagiolo

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)

Abstract

This paper employs a homogenous firms database to investigate industry localiza- tion in European countries. More specifically, we compare, across industries and countries, the predictions of two of the most popular localization indices, i.e., the Ellison and Glaeser index (Ellison and Glaeser, 1997) and the Duranton and Over- man index (Duranton and Overman, 2005). We find that, independently from the index used, localization is a pervasive phenomenon in all countries studied, but the degree of localization is very uneven across industries in each country. Furthermore, we find that the two indices significantly diverge in predicting the intensity of the forces generating localization within each industry. Finally, we perform a cross- sectoral analysis of localized industries. We show that, in all countries, localized sectors are mainly “traditional” sectors (like jewelery, wine, and textiles) and sec- tors where scale economies are important. However, once one controls for countries’ industrial structures science-based sectors turn out to be the most localized ones.
Original languageEnglish
Number of pages21
JournalRegional Studies
Volume00
Publication statusPublished - 2011

All Science Journal Classification (ASJC) codes

  • General Environmental Science
  • General Social Sciences

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