International Regional Science Review

 

Advanced Search

Journal Navigation

Journal Home

Subscriptions

Archive

Contact Us

Table of Contents

Sign In to gain access to subscriptions and/or personal tools.
This Article
Right arrow Full Text (PDF)
Right arrow References
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Similar articles in ISI Web of Science
Right arrow Alert me to new issues of the journal
Right arrow Add to Saved Citations
Right arrow Download to citation manager
Right arrowRequest Permissions
Right arrow Request Reprints
Right arrow Add to My Marked Citations
Citing Articles
Right arrow Citing Articles via Google Scholar
Google Scholar
Right arrow Articles by Koo, J.
Right arrow Articles by Lall, S.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us   Add to Digg   Add to Reddit   Add to Technorati  
What's this?
International Regional Science Review, Vol. 30, No. 1, 3-19 (2007)
DOI: 10.1177/0160017606296730

New Economic Geography: Real or Hype?

Jun Koo

Department of Public Administration, Korea University, Seoul, Korea, jkoo{at}korea.ac.kr

Somik Lall

Development Research Group, World Bank, Washington, DC, slall1{at}worldbank.org

New economic geography has become a mantra for many economists, geographers, and regional scientists. Many recent studies have tested the importance of economic geography for production activities and found a significant association between them. Most of these studies, however, have not taken into account that productivity gains from economic geography, if any, are conditional on firm-location choice. This article illustrates a potential bias that can arise when firm-location choice is not considered in estimating the contribution of economic geography to firm performance. An analysis using microdata of Indian manufacturing firms shows that there is an upward bias in the contribution of economic geography to productivity when firm-location choice is not jointly taken into account as part of production decisions.

Key Words: new economic geography • firm location • agglomeration economies


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us   Add to Digg Digg   Add to Reddit Reddit   Add to Technorati Technorati    What's this?