Total Factor Productivity Growth and Agglomeration Economies in Manufacturing, 1959‐73*

This paper investigates the determinants of productivity growth in the manufacturing sector of states over the period 1959‐1973. Special emphasis is placed on isolating the effects of a state's urbanization characteristics on productivity growth. Urbanization characteristics considered include the spatial arrangement of cities along with the standard measures of urbanization. The results indicate that while both scale economies and technical change are related to urbanization characteristics the effects tend to be offsetting; no relationship is found between urbanization and overall productivity growth as measured by total factor productivity growth.