Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Marshall vs Jacobs agglomeration and the micro-location of foreign and domestic firms
Abstract This paper examines the factors determining the subnational geographic location of the investments of multinational enterprises (MNEs). Building on the tension between the costs and benefits that agglomeration confers on firms, we compare and contrast Marshallian and Jacobian agglomeration mechanisms to understand the micro-location patterns of domestic and foreign firms. We test these ideas on a dataset of 387.000 workplace-year observations located across 93 municipalities in Denmark. The results show that while agglomeration is systematically related to both foreign and domestic location patterns, some of these relationships vary across agglomeration types and across subsamples of domestic and foreign workplaces. We also demonstrate the importance of controlling for global connectivity, which may otherwise confound these relationships.
Highlights Agglomeration is a multifaceted phenomenon that determines FDI micro-location choices. Marshall and Jacobs agglomeration operate both simultaneously and independently to explain micro-location choice of both foreign and domestic firms. Attracting FDI (MNEs) to locations that are already characterized by high density may push up rents, wages, and competition, which in turn might be detrimental to local firms. Coordination and collaboration across different levels of government is paramount. Agglomeration may influence the urban-rural divide and congestion will favour locations of FDI in rural areas over urban areas.
Marshall vs Jacobs agglomeration and the micro-location of foreign and domestic firms
Abstract This paper examines the factors determining the subnational geographic location of the investments of multinational enterprises (MNEs). Building on the tension between the costs and benefits that agglomeration confers on firms, we compare and contrast Marshallian and Jacobian agglomeration mechanisms to understand the micro-location patterns of domestic and foreign firms. We test these ideas on a dataset of 387.000 workplace-year observations located across 93 municipalities in Denmark. The results show that while agglomeration is systematically related to both foreign and domestic location patterns, some of these relationships vary across agglomeration types and across subsamples of domestic and foreign workplaces. We also demonstrate the importance of controlling for global connectivity, which may otherwise confound these relationships.
Highlights Agglomeration is a multifaceted phenomenon that determines FDI micro-location choices. Marshall and Jacobs agglomeration operate both simultaneously and independently to explain micro-location choice of both foreign and domestic firms. Attracting FDI (MNEs) to locations that are already characterized by high density may push up rents, wages, and competition, which in turn might be detrimental to local firms. Coordination and collaboration across different levels of government is paramount. Agglomeration may influence the urban-rural divide and congestion will favour locations of FDI in rural areas over urban areas.
Marshall vs Jacobs agglomeration and the micro-location of foreign and domestic firms
Nielsen, Bo Bernhard (Autor:in) / Asmussen, Christian Geisler (Autor:in) / Weatherall, Cecilie Dohlmann (Autor:in) / Lyngemark, Ditte Håkonsson (Autor:in)
Cities ; 117
22.06.2021
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
F23 , Agglomeration , Marshall , Jacobs , Global cities , Cluster , Location choice
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