Firms may benefit from proximity to each other due to the existence of several externalities. The productivity premia … terms of productivity than non-traders when agglomeration rises. Firms that are stable participants of international trade … gain 16 % in terms of total factor productivity growth as agglomeration doubles while non-traders may not benefit from …

purely region/local market specific attributes. Second, we extend the estimation of the demand side and partly use it as … to instrument station density, used in classical price estimation models, (partly) with demand factors. We find that …