Duranton, Gilles; Overman, Henry G - C.E.P.R. Discussion Papers - 2002
To study the detailed location patterns of industries, and particularly the tendency for industries to cluster relative … to overall manufacturing, we develop distance-based tests of localization. In contrast to previous studies, our approach …% confidence level, (ii) localization takes place mostly at small scales below 50 kilometres, (iii) the degree of localization is …