An Overview of Investigations Concerning Agglomerations in Regional Economy
DOI:
https://doi.org/10.17059/ekon.reg.2022-2-2Abstract
The concentration of organisations in a city or region allows companies to receive benefits without additional costs and increase their productivity. It has been empirically proven that urbanisation and localisation effects of agglomerations contribute to economic growth and development, and therefore should be taken into account in regional and urban policies. The article considers the factors of agglomeration formation, their specific development and impact on the economy of regions and cities. The paper examines studies on the territorial distribution of companies and the population, including creative capital, showing the connection with innovative systems and knowledge capital. The research demonstrates how international trade, market competition, the transport system development and many other factors affect agglomerations. The study of agglomeration processes intersects with other fields of science, such as evolutionary economics, cluster organisation, specialisation and diversification, demography of firms. To cover the topic, works in the field of agglomeration processes were systematised by using time-domain, terminological and geographical analysis, as well by studying definitions and typology, based on data obtained from Google Scholar and Web of Science for 1959–2018. It is revealed that agglomerations are considered in such scientific fields as economics, geography, regional urban planning, urban studies, management and regional studies. The key terms are agglomeration economy (economics), localisation, urbanisation, agglomeration forces, agglomerative and deglomerative factors. These works are geographically distributed, and most of them are conducted in the USA (mainly at the University of California), Great Britain (London School of Economics and Law) and China (Chinese Academy of Sciences and Peking University). The presented research review will serve as a starting point for a more in-depth study of agglomeration processes in various fields of economics.
References
Acs, Z. J. & Varga, A. (2005). Entrepreneurship, agglomeration and technological change. Small business economics, 24(3), 323–334. DOI: 10.1007/s11187–005–1998–4.
Alcácer, J. & Chung, W. (2007). Location strategies and knowledge spillovers. Management science, 53(5), 760–776. DOI: 10.1287/mnsc.1060.0637.
Alonso, W. (1971). The economics of urban size. Papers of the Regional Science Association, 26(1), 66–83. DOI: 10.1111/j.1435–5597.1971.tb01493.x.
Au, C. C. & Henderson, J. V. (2006). Are Chinese cities too small? Review of Economic Studies, 73(3), 549–576. DOI: 10.1111/j.1467–937X.2006.00387.x.
Baldwin, R. E. & Okubo, T. (2006). Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting. Journal of Economic Geography, 6(3), 323–346. DOI: 10.1093/jeg/lbi020.
Batten, D. F. (1995). Network cities: creative urban agglomerations for the 21st century. Urban studies, 32(2), 313–327. DOI: 10.1080/00420989550013103.
Baum, J. A. C. & Haveman, H. A. (1997). Love thy neighbor? Differentiation and agglomeration in the Manhattan hotel industry, 1898–1990. Administrative Science Quarterly, 42(2), 304–338. DOI: 10.2307/2393922.
Bell, G. G. (2005). Clusters, networks, and firm innovativeness. Strategic management journal, 26(3), 287–295. DOI: 10.1002/smj.448.
Black, D. & Henderson, V. (1999). A theory of urban growth. Journal of political economy, 107(2), 252–284. DOI: 10.1086/250060.
Boschma, R. A. & Wenting, R. (2007). The spatial evolution of the British automobile industry: Does location matter? Industrial and corporate change, 16(2), 213–238. DOI: 10.1093/icc/dtm004.
Camagni, R., Capello, R. & Caragliu, A. (2017). Static vs. dynamic agglomeration economies: Spatial context and structural evolution behind urban growth. In: R. Capello (Ed.), Seminal studies in regional and urban economics (pp. 227–259). Springer, Cham, 450.
Caragliu, A., Del Bo, C. F., Kourtit, K. & Nijkamp, P. (2016). The winner takes it all: forward-looking cities and urban innovation. The Annals of Regional Science, 56(3), 617–645. DOI: 10.1007/s00168–015–0734–5.
Cingano, F. & Schivardi, F. (2004). Identifying the sources of local productivity growth. Journal of the European Economic association, 2(4), 720–742. DOI: 10.1162/1542476041423322.
Combes, P. P., Duranton, G., Gobillon, L., Puga, D. & Roux, S. (2012). The productivity advantages of large cities: Distinguishing agglomeration from firm selection. Econometrica, 80(6), 2543–2594. DOI: 10.3982/ECTA8442.
Delgado, M., Porter, M. E. & Stern, S. (2010). Clusters and entrepreneurship. Journal of economic geography, 10(4), 495–518. DOI: 10.1093/jeg/lbq010.
Delgado, M., Porter, M. E. & Stern, S. (2014). Clusters, convergence, and economic performance. Research policy, 43(10), 1785–1799. DOI: 10.1016/j.respol.2014.05.007.
Duranton, G. & Puga, D. (2000). Diversity and specialisation in cities: why, where and when does it matter? Urban studies, 37(3), 533–555. DOI: 10.1080/0042098002104.
Feldman, M. P. & Audretsch, D. B. (1999). Innovation in cities: Science-based diversity, specialization and localized competition. European economic review, 43(2), 409–429. DOI: 10.1016/S0014–2921(98)00047–6.
Frenken, K., Van Oort, F. & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional studies, 41(5), 685–697. DOI: 10.1080/00343400601120296.
Fujita, M., Krugman, P. R. & Venables, A. (1999). The spatial economy: Cities, regions, and international trade. MIT press.
Fujita, M. & Mori, T. (1996). The role of ports in the making of major cities: self-agglomeration and hub-effect. Journal of development Economics, 49(1), 93–120. DOI: 10.1016/0304–3878(95)00054–2.
Fujita, M. & Thisse, J. F. (1996). Economics of agglomeration. Journal of the Japanese and international economies, 10(4), 339–378. DOI: 10.1006/jjie.1996.0021.
Fullerton, A. S. & Villemez, W. J. (2011). Why does the spatial agglomeration of firms benefit workers? Examining the role of organizational diversity in US Industries and Labor Markets. Social forces, 89(4), 1145–1164. DOI: 10.1093/sf/89.4.1145.
Gertler, M. S. (2003). Tacit knowledge and the economic geography of context, or the undefinable tacitness of being (there). Journal of economic geography, 3(1), 75–99. DOI: 10.1093/jeg/3.1.75.
Glaeser, E. L. & Gottlieb, J. D. (2008). The economics of place-making policies. NBER Working Paper No. 14373. National Bureau of Economic Research, 95. DOI: 10.3386/w14373.
Glaeser, E. L. & Gottlieb, J. D. (2009). The wealth of cities: Agglomeration economies and spatial equilibrium in the United States. Journal of economic literature, 47(4), 983–1028. DOI: 10.1257/jel.47.4.983.
Glaeser, E. L. & Kerr, W. R. (2009). Local industrial conditions and entrepreneurship: how much of the spatial distribution can we explain? Journal of Economics & Management Strategy, 18(3), 623–663. DOI: 10.1111/j.1530–9134.2009.00225.x.
Glaeser, E. L. (1999). Learning in cities. Journal of urban Economics, 46(2), 254–277. DOI: 10.1006/juec.1998.2121.
Glaeser, E. L., Kallal, H. D., Scheinkman, J. A. & Shleifer, A. (1992). Growth in cities. Journal of political economy, 100(6), 1126–1152. DOI: 10.1086/261856.
Gordon, I. R. & McCann, P. (2000). Industrial clusters: complexes, agglomeration and/or social networks? Urban studies, 37(3), 513–532. DOI: 10.1080/0042098002096.
Hanson, G. H. (1998). Regional adjustment to trade liberalization. Regional science and urban economics, 28(4), 419–444. DOI: 10.1016/S0166–0462(98)00006–4.
Harrison, B., Kelley, M. R. & Gant, J. (1996). Innovative firm behavior and local milieu: exploring the intersection of agglomeration, firm effects, and technological change. Economic geography, 72(3), 233–258. DOI: 10.2307/144400.
Henderson, J. V. (2003a). Marshall’s scale economies. Journal of Urban Economics, 53(1), 1–28. DOI: 10.1016/S0094–1190(02)00505–3.
Henderson, J. V. (2003b). The urbanization process and economic growth: The so-what question. Journal of Economic growth, 8(1), 47–71. DOI: 10.1023/A:1022860800744.
Isard, W. & Schooler, E. W. (1959). Industrial complex analysis, agglomeration economies, and regional development. Journal of Regional Science, 1(2), 19–33. DOI: 10.1111/j.1467–9787.1959.tb01456.x.
Isard, W. (1956). Location and Space Economy. New York: John Wiley, 369.
Keeble, D. & Walker, S. (1994). New firms, small firms and dead firms: spatial patterns and determinants in the United Kingdom. Regional studies, 28(4), 411–427. DOI: 10.1080/00343409412331348366.
Klepper, S. (2007). Disagreements, spinoffs, and the evolution of Detroit as the capital of the US automobile industry. Management Science, 53(4), 616–631. DOI: 10.1287/mnsc.1060.0683.
Kline, P. & Moretti, E. (2014). Local economic development, agglomeration economies, and the big push: 100 years of evidence from the Tennessee Valley Authority. The Quarterly Journal of Economics, 129(1), 275–331. DOI: 10.1093/qje/qjt034.
Krugman, P. (1991). Increasing returns and economic geography. Journal of political economy, 99(3), 483–499. DOI: 10.1086/261763.
Krugman, P. (1993). First nature, second nature, and metropolitan location. Journal of regional science, 33(2), 129–144. DOI: 10.1111/j.1467–9787.1993.tb00217.x.
Kutsenko, E. S. (2012). Path Dependence in Spatial Distribution of Economic Activity: Bad News for Empiric Research of Agglomeration Effects. Zhurnal Novoy ekonomicheskoy assotsiatsii [Journal of the New Economic Association], 14(2), 10–26. (In Russ.)
Malmberg, A. & Maskell, P. (2002). The elusive concept of localization economies: towards a knowledge-based theory of spatial clustering. Environment and Planning A: Economy and Space, 34(3), 429–449. DOI: 10.1068/a3457.
Marcus, M. (1965). Agglomeration Economies: A Suggested Approach. Land Economics, 41(3), 279–284. DOI: 10.2307/3144862.
Markusen, A. (1996). Sticky places in slippery space: a typology of industrial districts. Economic geography, 72(3), 293–313. DOI: 10.2307/144402.
Markusen, J. R. & Venables, A. J. (2000). The theory of endowment, intra-industry and multi-national trade. Journal of International Economics, 52(2), 209–234. DOI: 10.1016/S0022–1996(99)00055–0.
Marshall, A. (1890). Principles of Economics. London: Macmillan, 731.
Martin, R. & Sunley, P. (1996). Paul Krugman’s geographical economics and its implications for regional development theory: a critical assessment. Economic geography, 72(3), 259–292. DOI: 10.2307/144401.
Maskell, P. & Malmberg, A. (1999). Localised learning and industrial competitiveness. Cambridge journal of economics, 23(2), 167–185. DOI: 10.1093/cje/23.2.167.
Meyer, K. E. & Nguyen, H. V. (2005). Foreign investment strategies and sub-national institutions in emerging markets: Evidence from Vietnam. Journal of management studies, 42(1), 63–93. DOI: 10.1111/j.1467–6486.2005.00489.x.
Moretti, E. (2004a). Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data. Journal of econometrics, 121(1–2), 175–212. DOI: 10.1016/j.jeconom.2003.10.015.
Moretti, E. (2004b). Workers’ education, spillovers, and productivity: evidence from plant-level production functions. American Economic Review, 94(3), 656–690. DOI: 10.1257/0002828041464623.
Ottaviano, G. I. & Puga, D. (1998). Agglomeration in the global economy: a survey of the ‘new economic geography’. World Economy, 21(6), 707–731.
Porter, M. E. (1996). Competitive advantage, agglomeration economies, and regional policy. International regional science review, 19(1–2), 85–90.
Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77–90.
Pouder, R. & St. John, C. H. (1996). Hot spots and blind spots: Geographical clusters of firms and innovation. Academy of management review, 21(4), 1192–1225. DOI: 10.5465/amr.1996.9704071867.
Puga, D. (2010). The magnitude and causes of agglomeration economies. Journal of regional science, 50(1), 203–219. DOI: 10.1111/j.1467–9787.2009.00657.x.
Quigley, J. M. (1998). Urban diversity and economic growth. Journal of Economic perspectives, 12(2), 127–138. DOI: 10.1257/jep.12.2.127.
Rastvortseva, S. (2017). Agglomeration economics in regions: The case in the Russian industry. Regional Science Inquiry, 9(2), 45–54.
Rastvortseva, S. N. (2018). Economic activity in Russian regions. Economic and Social Changes: Facts, Trends, Forecast, 11(1), 84–99. DOI: 10.15838/esc.2018.1.55.6.
Rosenthal, S. S. & Strange, W. C. (2001). The determinants of agglomeration. Journal of urban economics, 50(2), 191–229. DOI: 10.1006/juec.2001.2230.
Rosenthal, S. S. & Strange, W. C. (2003). Geography, industrial organization, and agglomeration. Review of Economics and Statistics, 85(2), 377–393. DOI: 10.1162/003465303765299882.
Scott, A. & Storper, M. (2003). Regions, globalization, development. Regional studies, 37(6–7), 579–593. DOI: 10.1080/0034340032000108697a.
Scott, A. J. (2006). Creative cities: Conceptual issues and policy questions. Journal of urban affairs, 28(1), 1–17. DOI: 10.1111/j.0735–2166.2006.00256.x.
Shaver, J. M. & Flyer, F. (2000). Agglomeration economies, firm heterogeneity, and foreign direct investment in the United States. Strategic management journal, 21(12), 1175–1193. DOI: 10.1002/1097–0266(200012)21:12<1175::AID-SMJ139>3.0.CO;2-Q.
Storper, M. & Venables, A. J. (2004). Buzz: face-to-face contact and the urban economy. Journal of economic geography, 4(4), 351–370. DOI: 10.1093/jnlecg/lbh027.
Turok, I. (2004). Cities, regions and competitiveness. Regional studies, 38(9), 1069–1083. DOI: 10.1080/0034340042000292647.
Weber, A. (1905). Über den Standort der Industrien. J. C. B. Mohr, Tübingen. (In German)
Weber, A. (1956). Theory of the Location of Industries. Chicago, Illinois: The University of Chicago Press, 256.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Растворцева Светлана Николаевна
This work is licensed under a Creative Commons Attribution 4.0 International License.
