Bobonis, Gustavo J.; Shatz, Howard J. - In: The Review of Economics and Statistics 89 (2007) 1, pp. 30-43
Using U.S. state-level data we show that agglomeration externalities influence the level of foreign-invested capital in a location. Our empirical model allows the separation of agglomeration effects from the rate of capital stock adjustment, two forces that previous research has conflated. We...