Working Paper: NBER ID: w3787
Authors: Edward L. Glaeser; Hedi D. Kallal; Jose A. Scheinkman; Andrei Shleifer
Abstract: Recent theories of economic growth, including Romer (1986), Porter (1989) and Jacobs (1969), have stressed the role of technological spillovers in generating growth. Because such knowledge spillovers are particularly effective in cities, where communication between people is more extensive, data on the growth of industries in different cities allows us to test some of these theories. Using a new data set on the growth of large industries in 170 U.S. cities between 1956 and 1987, we find that local competition and urban variety, but not regional specialization, encourage employment growth in industries. The evidence suggests that important knowledge spillovers might be between, rather than within industries, consistent with the theories of Jacobs (1969).
Keywords: Urban Growth; Knowledge Spillovers; Economic Growth
JEL Codes: R11; O18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| local competition (L13) | employment growth (O49) |
| urban variety (R29) | employment growth (O49) |
| regional specialization (R11) | employment growth (O49) |
| smaller firms (L25) | employment growth (O49) |
| city diversity (R23) | employment growth (O49) |