Coagglomeration and Growth

We study the coagglomeration of domestic plants and foreign multinationals and the impact of this on domestic plant growth using data for Irish manufacturing. To this end we make use of the index developed by Ellison and Glaeser (1997) and find coagglomeration to be important for a number of industries. Foreign presence as well as foreign employment density are found to be important determinants of employment growth over the period, especially for those industries with a high degree of coagglomeration.

Barrios, Salvador, Luisito Bertinelli and Eric Strobl (2003), Coagglomeration and Growth, ZEW Discussion Paper No. 03-39, Mannheim.