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...
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Washington, DC: World Bank
2022
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| 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 |
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okr-10986-371072022-03-10T05:10:49Z Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility Burger, Martijn Ianchovichina, Elena Akbar, Prottoy Aman AGGLOMERATION ECONOMY LABOR PRODUCTIVITY RANDOM EFFECTS MODEL ECONOMIC POTENTIAL OF CITY FIXED EFFECT MODEL EFFECT OF CONGESTION 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. 2022-03-09T19:01:23Z 2022-03-09T19:01:23Z 2022-03-07 Working Paper 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 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
AGGLOMERATION ECONOMY LABOR PRODUCTIVITY RANDOM EFFECTS MODEL ECONOMIC POTENTIAL OF CITY FIXED EFFECT MODEL EFFECT OF CONGESTION |
| spellingShingle |
AGGLOMERATION ECONOMY LABOR PRODUCTIVITY RANDOM EFFECTS MODEL ECONOMIC POTENTIAL OF CITY FIXED EFFECT MODEL EFFECT OF CONGESTION Burger, Martijn Ianchovichina, Elena Akbar, Prottoy Aman Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility |
| description |
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. |
| format |
Working Paper |
| author |
Burger, Martijn Ianchovichina, Elena Akbar, Prottoy Aman |
| author_facet |
Burger, Martijn Ianchovichina, Elena Akbar, Prottoy Aman |
| author_sort |
Burger, Martijn |
| title |
Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility |
| title_short |
Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility |
| title_full |
Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility |
| title_fullStr |
Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility |
| title_full_unstemmed |
Heterogeneous Agglomeration Economies in the Developing Countries : The Roles of Firm Characteristics, Sector Tradability, and Urban Mobility |
| title_sort |
heterogeneous agglomeration economies in the developing countries : the roles of firm characteristics, sector tradability, and urban mobility |
| publisher |
Washington, DC: World Bank |
| publishDate |
2022 |
| url |
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 |
| _version_ |
1764486570709090304 |