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Geographic Concentration of Business Services Firms: A Poisson Sorting Model

1st Person: Koster, Hans
Additional Persons: van Ommeren, Jos N.; Rietveld, Piet; van Ommeren, Jos
Type of Publication: Paper
Language: English
Published: Tinbergen Institute 2011
Series: 51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
Keywords: Regionales Cluster
Dienstleistungssektor
Betriebliche Standortwahl
Regionalökonomik
Regional cluster
Service industry
Firm location choice
Online: https://www.econstor.eu/bitstream/10419/120082/1/ERSA2011_0750.pdf
id
oai_econstor.eu_10419-87529
recordtype
econstor
institution
MPG
collection
ECONSTOR
title
Geographic Concentration of Business Services Firms: A Poisson Sorting Model
spellingShingle
Geographic Concentration of Business Services Firms: A Poisson Sorting Model
Regionales Cluster
Dienstleistungssektor
Betriebliche Standortwahl
Regionalökonomik
Regional cluster
Service industry
Firm location choice
Koster, Hans
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
title_short
Geographic Concentration of Business Services Firms: A Poisson Sorting Model
title_full
Geographic Concentration of Business Services Firms: A Poisson Sorting Model
title_fullStr
Geographic Concentration of Business Services Firms: A Poisson Sorting Model
title_full_unstemmed
Geographic Concentration of Business Services Firms: A Poisson Sorting Model
title_sort
Geographic Concentration of Business Services Firms: A Poisson Sorting Model
format
electronic Article
format_phy_str_mv
Paper
publisher
Tinbergen Institute
publishDate
2011
language
English
topic
Regionales Cluster
Dienstleistungssektor
Betriebliche Standortwahl
Regionalökonomik
Regional cluster
Service industry
Firm location choice
topic_facet
Regional cluster
Service industry
Firm location choice
author
Koster, Hans
author2
van Ommeren, Jos N.
Rietveld, Piet
van Ommeren, Jos
author2Str
van Ommeren, Jos N.
Rietveld, Piet
van Ommeren, Jos
description
This paper examines the effects of specialisation (within-sector clustering) and diversity (between-sector clustering) on business services profitability and location choice. We apply a semiparametric Poisson sorting model allowing for firm-specific effects. We find that for most firms, profitability of business services firms is substantially higher close to specialised clusters of business services firms. A standard deviation increase in business services specialisation leads to on average a 40 percent increase in the probability that a business services firm locates there, supporting theories of Marshall, Arrow and Romer. It is also profitable for most business services firms to locate near a group of firms that belong to the same sector, not necessarily business services firms, so diversity is negatively related to location decisions. Almost all firms either benefit from within-sector clustering or between-sector clustering. Within-sector clusters are particularly profitable for large mature firms, whereas between-sector clusters are relatively more profitable for smaller innovative firms.
url
https://www.econstor.eu/bitstream/10419/120082/1/ERSA2011_0750.pdf
series
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
seriesStr
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
series2
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
series2_facet
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
up_date
2019-11-22T03:50:16.966Z
_version_
1650872432459776002

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