NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Zhu Wang

Federal Reserve Bank of Richmond
Research Department
701 East Byrd Street
Richmond, VA 23219

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NBER Working Papers and Publications

April 2013Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry
with Luís Cabral, Daniel Yi Xu: w18973
Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry spillovers, particularly the development of the carriage and wagon industry, play an important role. Spinouts play a secondary role and work as a special type of intra-industry spillovers. The presence of other firms in the same industry has a negligible (or even negative) effect. Finally, local inputs account for some agglomeration in the short run, but the effects are much more profound in the long run.

Published: Luís Cabral & Zhu Wang & Daniel Yi Xu, 2018. "Competitors, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry," Review of Economic Dynamics, . citation courtesy of

 
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