Since key sectors have high backward and forward linkages with rest of the economy, investment in these sectors is expected to maximize the economic growth, which is extensively meaningful in undeveloped or developing countries with limited resources. Besides, it is considerably necessary and...

This paper studies the sources of agglomeration economies in cities. We begin by introducing a simple dynamic spatial equilibrium model that incorporates spillovers within and across industries, as well as city-size effects. The model generates a dynamic panel-data estimation equation. We...

The real effective exchange rate (REER) is one of the most cited statistical constructs in international macroeconomics. With the rising importance of offshoring and outsourcing, the standard measures are increasingly flawed. In addition, because different sectors within a country may...

Direct trade between establishments, coupled with costs of trading goods and information across space, has long been considered a primary determinant of industrial colocation. However, researchers have had difficulty decomposing the effects of interindustry trade into these two cost components....

Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry...

This study explores whether absorptive capacity, one of the most important concepts in the literature on inter-partner learning and innovation in alliances, can be directly transposed to cross-sector alliances. The results of the analysis suggest that current models of absorptive capacity only...

The main purpose of this study is to determine what are the main factors which stand behind the diversity in performance of business services measured by their contribution to growth in the EU Member States. We show that in addition to typical growth factors which enhance labour productivity,...