【摘要】We test whether commonly used measures of agglomeration economies encourage newfirm entry in both urban and rural markets. Using new firm location decisions in Iowa and NorthCarolina, we find that measured agglomeration economies increase the probability of new firm entry inboth urban and rural areas. Firms are more likely to locate in markets with an existing cluster of firmsin the same industry, with greater concentrations of upstream suppliers or downstream customers,and with a larger proportion of college-educated workers in the local labor supply. Firms are lesslikely to enter markets with no incumbent firms in the sector or where production is concentrated inrelatively few sectors. The same factors encourage both stand-alone start-ups and establishments builtby multiplant firms. Commuting decisions exhibit the same pattern as new firm entry with workerscommuting from low to high agglomeration markets. Because agglomeration economies are importantfor rural firm entry also, policies encouraging new firm entry should focus on relatively few job centersrather than encouraging new firm entry in every small town.

【文献来源】 Artz G M;Kim Y;Orazem P F.Annals of regional Science.2016(1)