Bottazzi G. and Gragnolati U. Cities and clusters: economy-wide and sector-specific effects in corporate location, Regional Studies. Are the observed spatial distributions of firms decided mostly by economy-wide urbanization economies or rather by sector-specific localization economies? This paper finds that the latter kind of forces weight systematically more than the former in deciding firm location. The analysis uses Italian data on a variety of manufacturing and service sectors spatially disaggregated at the level of local labour market areas.
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Bottazzi et al. (2012) studied this question.
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