Agglomeration Externalities and Sectoral Employment Growth in Cities

Abstract

Firms benefit some external effects resulting from the concentration of economic activities in certain regions. These effects called “agglomeration economies” or “agglomeration externalities” are mainly divided into three categories – MAR, Jacobs and Porter externalities –, and regarded as the determinant factors of regional economic development and growth. This study analyzes the impact of agglomeration externalities on employment growth using Turkish data of 43 sectors operating in 81 Turkish cities between years 2001 and 2007. OLS regression analyses are repeated for each sector. As far as the MAR externalities are concerned, their impact on employment growth is found negative in 23 sectors while Jacobs externalities have significant and positive effects only on 4 sectors, most of which are from service sectors. As for Porter externalities, they prove to have positive effect on the regional employment growth for 16 sectors. Moreover, urbanization externalities are found to affect the regional growth positively in 4 sectors and negatively in 1 sector. While the impact of the initial level of regional labor supply is found positive, the initial level of regional employment level has negative effect on employment growth. Finally, the share of high education level in cities is found to have almost no effect on regional growth.

Keywords: {'name': 'Agglomeration Economies'}, {'name': 'Sectoral employment'}, {'name': 'MAR'}, {'name': 'Jacobs'}, {'name': 'Porter'}

Authors & affiliations

Ayse Saime Doner
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1016/S1043-951X(02)00068-8

DOI: 10.1016/j.respol.2008.11.010

Bildirici, M., Ersin, Ö. Ö., Türkmen, C. ve Yalçınkaya, Y. (2012). The Persistence Effect of Unemployment in Turkey: An Analysis of the 1980-2010 Period. Journal of Business Economics and Finance, 1(3), 22–32.

DOI: 10.1080/00343400802508810

DOI: 10.1111/j.1944-8287.2009.01034.x

DOI: 10.1080/00130095.2015.1094371

DOI: 10.1162/1542476041423322

DOI: 10.1006/juec.1999.2143

Çondur, F. ve Bölükbaş, M. (2014). Türkiye’de İşgücü Piyasası ve Genç İşsizlik-Büyüme İlişkisi Üzerine Bir İnceleme. Amme İdaresi Dergisi, 47(2), 77–93.

DOI: 10.1007/s00168-008-0272-5

DOI: 10.1162/003465302317411550

Filiztekin, A. (2002). Agglomeration and Growth in Turkey, 1980-1995. Sabancı Üniversitesi Tartışma Tebliğleri, (0201). http://myweb.sabanciuniv.edu/alpayf/files/2010/04/agglotur.pdf adresinden erişildi.

DOI: 10.1080/00343400601120296

DOI: 10.1086/261856

DOI: 10.1080/13662716.2012.718874

DOI: 10.1086/262013

Jacobs, J. (1969). The Economy of Cities. New York: Vintage Books.

DOI: 10.31671/dogus.2019.252

DOI: 10.1080/00420980500121889

Marshall, A. (1890). Principles of Economics. London: Macmillan and Co., Ltd.

DOI: 10.1080/00343401003596307

DOI: 10.4000/rei.3917

DOI: 10.1007/978-1-349-11336-1

Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, (Nov-Dec), 77–90.

DOI: 10.1016/S1574-0080(04)80006-3

Şenses, F. (2007). Uluslararası Gelişmeler Işığında Türkiye Yükseköğretim Sistemi: Temel Eğilimler, Sorunlar, Çelişkiler ve Öneriler. Economic Research Center Working Papers in Economics 07, 5. http://erc.metu.edu/menu/series07/0705.pdf adresinden erişildi.

DOI: 10.1007/s00191-004-0232-x

DOI: 10.1080/09654313.2014.905003

DOI: 10.1111/j.1467-9787.2006.00488.x