Agglomeration Economies: An Analysis of the Determinants of Employment in the Cities of Ecuador

Autor: Tania Paola Torres-Gutiérrez, Ronny Correa-Quezada, José Álvarez-García, María de la Cruz del Río-Rama
Jazyk: angličtina
Rok vydání: 2019
Předmět:
Zdroj: Symmetry, Vol 11, Iss 11, p 1421 (2019)
Druh dokumentu: article
ISSN: 2073-8994
DOI: 10.3390/sym11111421
Popis: The objective of this investigation is to study the role of agglomeration economies (manufacturing) in urban employment growth, as a proxy for economic growth, between 1980 and 2010 in Ecuador. The three measures of agglomeration-specialization, diversity, and density-are tested to determine their effect on employment growth in industries. The empirical analysis is based on firm- and city-level data from manufacturing activities. A model is proposed to estimate the effect of agglomeration economies on the growth of employment and a regression is conducted using instrumental variables. In particular, the two-stage least squares (2SLS) estimator is used. We conclude that localization economies measured by a specialization index have a positive impact on the growth of employment in the period analyzed. The results are similar to those obtained by other work carried out both in developed and developing countries.
Databáze: Directory of Open Access Journals
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