Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry...

We propose a new measure of inter-industry ‘distance'. This is constructed a la Antras et al. (2012). While they measure the distance of an industry from its final use - what they call ‘downstreamness' of an industry - we measure the distance between a pair of industries. Our proposed index...