The occurence of agglomerations raises several questions: How come that economic activity is agglomerated instead of evenly spread out across space? What implications do agglomerations have for welfare (earnings, employment, etc.) and economic policy? How do increased globalisation and...

In this paper we analyse vertical industry linkages and the extent to which these work as channels for externalities. First, activity based externalities stemming from output growth and output level in vertically linked industries are tested for. Second, we aim at revealing the importance of a...