Gilles Duranton and Henry Overman provided invaluable advice. We also thank Jim Rubenstein and John Stevens for helpful comments and Cole Bolton, Vanessa Haleco, and Paul Ma for excellent research assistance.
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EVOLVING AGGLOMERATION IN THE U.S. AUTO SUPPLIER INDUSTRY†
Article first published online: 8 JAN 2008
DOI: 10.1111/j.1467-9787.2008.00549.x
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How to Cite
Klier, T. and McMillen, D. P. (2008), EVOLVING AGGLOMERATION IN THE U.S. AUTO SUPPLIER INDUSTRY. Journal of Regional Science, 48: 245–267. doi: 10.1111/j.1467-9787.2008.00549.x
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Publication History
- Issue published online: 8 JAN 2008
- Article first published online: 8 JAN 2008
- Received: September 2006; accepted: July 2007.
- Abstract
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ABSTRACT Using nonparametric descriptive tools developed by Duranton and Overman (2005, Review of Economic Studies, 72, 1077–1106), we show that both new and old auto supplier plants are highly concentrated in the eastern United States. Conditional logit models imply that much of this concentration can be explained parametrically by distance from Detroit, proximity to assembly plants, and access to the interstate highway system. New plants are more likely to be located in zip codes that are close to existing supplier plants. However, the degree of clustering observed is still greater than implied by the logit estimates.