Marshall vs Jacobs agglomeration and the micro-location of foreign and domestic firms

TY - JOUR

T1 - Marshall vs Jacobs agglomeration and the micro-location of foreign and domestic firms

AU - Nielsen, Bo Bernhard

AU - Asmussen, Christian Geisler

AU - Weatherall, Cecilie Dohlmann

AU - Lyngemark, Ditte Håkonsson

N1 - Publisher Copyright: © 2021 Elsevier Ltd Copyright: Copyright 2021 Elsevier B.V., All rights reserved.

PY - 2021/10

Y1 - 2021/10

N2 - This paper examines the factors determining the subnational geographic location of the investments of multinational enterprises (MNEs). Building on the tension between the costs and benefits that agglomeration confers on firms, we compare and contrast Marshallian and Jacobian agglomeration mechanisms to understand the micro-location patterns of domestic and foreign firms. We test these ideas on a dataset of 387.000 workplace-year observations located across 93 municipalities in Denmark. The results show that while agglomeration is systematically related to both foreign and domestic location patterns, some of these relationships vary across agglomeration types and across subsamples of domestic and foreign workplaces. We also demonstrate the importance of controlling for global connectivity, which may otherwise confound these relationships.

AB - This paper examines the factors determining the subnational geographic location of the investments of multinational enterprises (MNEs). Building on the tension between the costs and benefits that agglomeration confers on firms, we compare and contrast Marshallian and Jacobian agglomeration mechanisms to understand the micro-location patterns of domestic and foreign firms. We test these ideas on a dataset of 387.000 workplace-year observations located across 93 municipalities in Denmark. The results show that while agglomeration is systematically related to both foreign and domestic location patterns, some of these relationships vary across agglomeration types and across subsamples of domestic and foreign workplaces. We also demonstrate the importance of controlling for global connectivity, which may otherwise confound these relationships.

KW - Agglomeration

KW - Cluster

KW - Global cities

KW - Jacobs

KW - Location choice

KW - Marshall

UR - http://www.scopus.com/inward/record.url?scp=85113277702&partnerID=8YFLogxK

U2 - 10.1016/j.cities.2021.103322

DO - 10.1016/j.cities.2021.103322

M3 - Article

AN - SCOPUS:85113277702

SN - 0264-2751

VL - 117

JO - CITIES

JF - CITIES

M1 - 103322

ER -