Template-Type: ReDIF-Paper 1.0
Title: Spatial Agglomeration and Superstar Firms: Firm-Level Patterns From Europe and U.S.
Author-Name: Laura Alfaro
Author-Email: lalfaro@hbs.edu
Author-Name: Maggie X. Chen
Author-Email: xchen@gwu.edu
Author-Name: Harald Fadinger
Author-Email: harald.fadinger@uni-mannheim.de

Classification-JEL: 
Keywords: 

Abstract: We characterize the agglomeration patterns of industries and plants in Europe,
distinguishing Eurozone countries and the U.S. Using a micro-level index, we
quantify the degree of geographic concentration in industrial activities and explore
how firm heterogeneity, industry attributes, and location fundamentals jointly explain
the observed patterns. Our analysis shows that there is a clear hub-and-spoke
structure in the geographic distribution. Larger and more productive plants,
especially the superstars of each industry, are more centred than their smaller, less
productive counterparts. The greater agglomeration surrounding superstars is
particularly pronounced in the Eurozone but not present in the rest of Europe.
Location fundamentals also play an important role and can sometimes mitigate the
importance of agglomeration economies around large firms. Regions with different
levels of economic development, including in education and technology, exhibit
distinct agglomeration patterns. The findings suggest heterogeneity in the ability of
regional policies to build superstar-centred industry clusters.

Note: 
Length: 47
Creation-Date: 2019-08
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp122
Handle: RePEc:bon:boncrc:CRCTR224_2019_122