Working Paper: CEPR ID: DP5858
Authors: Gilles Duranton; Henry G. Overman
Abstract: We use a point-pattern methodology to explore the detailed location patterns of UK manufacturing industries. In particular, we consider the location of entrants and exiters vs. continuing establishments, domestic- vs. foreign-owned, large vs. small, and affiliated vs. independent. We also examine co-localisation between vertically-linked industries. Our analysis provides a set of new stylised facts and confirmation for others.
Keywords: clusters; k-density; localisation; location patterns; spatial statistics
JEL Codes: C19; L70; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Entrants and exiters in approximately two-thirds of industries (L19) | Stability in industry locations over time (R32) |
| Entrants and exiters in about one-third of industries (L19) | Clustering and dispersing (C38) |
| Multi-establishment firms (L20) | Clustering of plants (C38) |
| Affiliated establishments of different firms (L14) | Lack of clustering tendency (C38) |
| Foreign-owned establishments (F23) | Similar location patterns (R14) |
| Foreign-owned establishments in industries with strong domestic leaders (F23) | Clustering with domestic establishments (C38) |
| Larger establishments (L68) | Clustering of larger establishments (C38) |
| Smaller establishments (M13) | Clustering of smaller establishments (R32) |
| Nuanced differences in location patterns among entrants, exiters, and continuing establishments (R32) | No overarching trend towards increased clustering or dispersion across industries (L69) |