The purpose of the present paper is twofold. First, we formulate a general method of identifying clusters of economic activity in a country or region. The methodology is based on generally available industry data and does not start from a prior notions of geographic or technology clusters....

This paper examines the relationship between agglomeration economies and relative wage costs in influencing location of multinational corporations. An inflow of firms to certain regions and industries is likely to increase demand for labor. If mobility of labor is low increased costs can be...

In this chapter we have briefly reviewed the recent theoretical advances made regarding the location of production, with emphasis on agglomeration of production across countries. We have confronted the theoretical explanations with the quite scarce empirical evidence on agglomeration in foreign...