More Similar Firms - More Similar Regions? On the Role of Firm Heterogeneity for Agglomeration
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Date
2012-12Type
- Working Paper
ETH Bibliography
yes
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Abstract
In contrast to what several papers have argued recently, we show that firm heterogeneity fosters agglomeration of economic activity. If firms are more similar with respect to their total factor productivity, each company faces a lower propensity to export. This renders the home market more important speaking against agglomeration. We also relate changes in firm heterogeneity to technological progress which allows us to derive novel insights on the role of technology for the location of economic activity. Show more
Publication status
publishedExternal links
Journal / series
CESifo Working PapersVolume
Publisher
CESifoSubject
Firm heterogeneity; Agglomeration; Technological change; Trade; Labor mobilityOrganisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
03840 - Egger, Peter / Egger, Peter
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ETH Bibliography
yes
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