Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility
Using geo-coded, firm-level data on more than 51,000 establishments in 649 metropolitan areas in 98 developing economies, from the World Bank’s Enterprise Surveys and a new global database on city-level mobility and congestion, this paper estimates...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
Washington, DC: World Bank
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/184361646662140642/Heterogeneous-Agglomeration-Economies-in-the-Developing-Countries-The-Roles-of-Firm-Characteristics-Sector-Tradability-and-Urban-Mobility http://hdl.handle.net/10986/37107 |
| Summary: | Using geo-coded, firm-level data on
more than 51,000 establishments in 649 metropolitan areas in
98 developing economies, from the World Bank’s Enterprise
Surveys and a new global database on city-level mobility and
congestion, this paper estimates the “pure” firm
productivity gains of urban density, net of negative
externalities associated with limited mobility, crime, and
pollution. The results suggest that the average size of
agglomeration economies in the developing world is
comparable to the one observed in advanced countries, but
the magnitude of the benefits of density on firm
productivity substantially varies across firms. Returns to
urban density are higher for firms operating in the
tradables sector, exporters, foreign-owned firms, larger
firms, and more experienced firms. Agglomeration economies
are lost through both limited uncongested mobility and
congestion, but the latter has a stronger negative effect on
agglomeration economies and reduces relatively more the
agglomeration benefits of firms in the non-tradables sector
than those producing tradables. |
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