Industrial Location at the Intra-Metropolitan Level: The Role of Agglomeration Economies

Arauzo-Carod J.-M. and Viladecans-Marsal E. Industrial location at the intra-metropolitan level: the role of agglomeration economies, Regional Studies. The objective of this paper is to analyse the influence of agglomeration economies on location decisions taken by new firms inside metropolitan areas. As it is assumed that these economies differ according to firms' level of technology, the sample comprises new firms from high-, intermediate- and low-technology industries. Of particularly interest is in analysing the effects of agglomeration economies that are felt over very short distances (inside the metropolitan areas). Introduced in the estimation is the effect of the central city as a determinant for the location of new firms in the rest of the metropolitan area. [image omitted]