. In the model, firms are heterogeneous in productivity. Selection effect and agglomeration economies caused by … agglomeration increase firms' productivity and decreases industrial entry costs, and factor prices are increased because of … shows that the compositive effect is that the influences of productivity on the latter increase with agglomeration level …

In this paper we compare the magnitude of local productivity advantages associated to two different spatial … findings. We detect local productivity advantages for both UA and ID. However, firms located in UA attain a larger Total Factor … Productivity (TFP) premium than those operating within ID. Besides, it turns out that the advantages of ID have declined over time …