KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
The Impact of Spatial Externalities: Skills, Education and Firm Productivity
Abstract: This paper analyses the role of spatial externalities in
explaining the average labour productivity of Swedish manufacturing firms.
The empirical findings support MAR and Porter externalities as well as
general urbanization economies, but not Jacobs externalities. In addition,
the matching between the firm and the regional labour force is found to be
productivity-enhancing. However, firm-specific characteristics, including
the characteristics of the employees, are not to be forgotten. Especially
since externalities are commonly associated with knowledge spillovers, and
it is through the employees that the external knowledge is absorbed and
channelled to the firm as a whole.
Keywords: Firm productivity; spatial externalities; manufacturing; Sweden; (follow links to similar papers)
JEL-Codes: D24; L25; L60; R32; (follow links to similar papers)
26 pages, April 12, 2013
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