More similar firms - More similar regions? On the role of firm heterogeneity for agglomeration

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4028

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; International Migration ; Size and Spatial Distributions of Regional Economic Activity
• Subject: firm heterogeneity ; agglomeration ; technological change ; trade ; labor mobility ; Unternehmen ; Produktivität ; Ballungsraum ; Regionales Cluster ; Technischer Fortschritt ; Standortwahl ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): von Ehrlich, Maximilian ; Seidel, Tobias
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/69542
• Last update: 10.03.2025, 11:42 AM CET