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Determinants of entry: Evidence from new manufacturing firms in the U.S
Author(s) -
Dong Yilin
Publication year - 2020
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12443
Subject(s) - economies of agglomeration , pooling , linkage (software) , empirical evidence , economic geography , business , industrial organization , manufacturing , economics , labour economics , microeconomics , marketing , biochemistry , chemistry , philosophy , epistemology , artificial intelligence , computer science , gene
The objective of this paper is to estimate the relationship between agglomeration economies and the birth of new firms in U.S. manufacturing sectors during 2004–2012. I examine the variations in Marshallian factors across MSAs and across counties within MSAs. My findings support the existence of Marshallian agglomeration forces: input sharing, labor market pooling, and knowledge spillovers, with input–output linkages particularly important. I then examine the variations in Marshallian factors across regions and find regional differences are not very strong. In addition, large‐sized firms appear to be more responsive to a supplier‐customer relationship. Moreover, my empirical results provide evidence that firms in highly concentrated industries react more to input linkage and labor pooling.