Cities and Clusters: Economy-Wide and Sector-Specific Effects in Corporate Location

• Published in: IDEAS Working Paper Series from RePEc
• Main Authors: Bottazzi, Giulio, Gragnolati, Ugo
• Format: Paper
• Language: English
• Published: St. Louis Federal Reserve Bank of St. Louis 01.01.2015

Are the observed spatial distributions of firms decided mostly by economy-wide urbanization economies or rather by sector-specific localization economies? This paper finds that the latter kind of forces weight systematically more than the former in deciding firm location. The analysis uses Italian d...