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Industry Characteristics Linked to Establishment Concentrations in Nonmetropolitan Areas
Author(s) -
Kim Yunsoo,
Barkley David L.,
Henry Mark S.
Publication year - 2000
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00173
Subject(s) - economies of agglomeration , negative binomial distribution , spatial dispersion , product (mathematics) , cluster analysis , distribution (mathematics) , manufacturing , production (economics) , business , dispersion (optics) , resource (disambiguation) , agricultural economics , regression analysis , econometrics , industrial organization , labour economics , economics , statistics , marketing , microeconomics , mathematics , computer science , mathematical analysis , computer network , physics , optics , poisson distribution , geometry
In this paper we investigate industry characteristics associated with the clustering of establishments in three‐digit SIC manufacturing industries in nonmetropolitan areas. The dispersion parameter k of the negative binomial distribution is selected as the measure of industry spatial concentration. Associations between industry characteristics and spatial concentration are investigated using OLS regression analysis. Our findings indicate that the spatial clustering of establishments is positively related to industry average establishment size, reliance on natural resource inputs, labor intensity, cost shares of professional and technical employees, and cost shares of low‐skilled workers. Agglomeration is negatively related to multiplant structure, employment in precision production, and reliance on local product and input markets.