Vertical Industry Linkages: Sources of Productivity Gains and Cumulative Causation?

Vertical Industry Linkages: Sources of Productivity Gains and Cumulative Causation? In this paper we analyse how vertical industry linkages maywork as channels for externalities. We test for activity based externalities stemming from outputgrowth and output level in vertically linked industries. Moreover, by comparing resultson localised inter-industry externalities as well as significance of local sales linkages,we try to reveal the strength of self-reinforcing agglomeration forces. A number of Norwegianmaritime transport and services sectors are analysed. The results are promising inthe sense that the model allows us to distinguish empirically between different sources ofexternalities, and unveils the extent to which vertical industry linkages give rise to self-reinforcingagglomeration. Review of Industrial Organization Springer Journals

Vertical Industry Linkages: Sources of Productivity Gains and Cumulative Causation?

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Kluwer Academic Publishers
Copyright © 2002 by Kluwer Academic Publishers
Economics; Industrial Organization; Microeconomics
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