We gratefully acknowledge comments of and discussions with Bart van Ark, Jouke van Dijk, Paul Elhorst, Herm van der Beek, Jacco Hakvoort, Remie Bonnier, and participants of the ERSA Conferences in Porto of August 2004 and in Amsterdam of August 2005. We thank Bertus Talsma for his computational assistance and Dirk Stelder for construction of the maps. Finally, the paper greatly benefited from comments and suggestions of three anonymous referees and Matt Kahn.
REGIONAL LABOR PRODUCTIVITY IN THE NETHERLANDS: EVIDENCE OF AGGLOMERATION AND CONGESTION EFFECTS*
Article first published online: 3 MAR 2009
© 2009, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 49, Issue 3, pages 483–511, August 2009
How to Cite
Broersma, L. and Oosterhaven, J. (2009), REGIONAL LABOR PRODUCTIVITY IN THE NETHERLANDS: EVIDENCE OF AGGLOMERATION AND CONGESTION EFFECTS. Journal of Regional Science, 49: 483–511. doi: 10.1111/j.1467-9787.2008.00601.x
- Issue published online: 3 AUG 2009
- Article first published online: 3 MAR 2009
- Received: May 2007; revised: April 2008; accepted: June 2008.
ABSTRACT This paper studies the impact of localization, urbanization, and diversification on regional labor productivity levels and growth. We find substantial effects, accounting for roughly half of the explained variation in the labor productivity differences within the Netherlands in the 1990s. Diversification, urbanization, and localization effects are significant and positive for productivity levels. These levels appear cointegrated. The error correction specification of productivity growth surprisingly reflects negative agglomeration effects. From the theoretical model it follows that congestion effects must have taken precedence over agglomeration effects during this period. Both agglomeration and congestion effects are dampened by job density in neighboring regions. Finally, policy simulations with the estimated model show that spatial concentration is more harmful to national productivity growth than spatial dispersion.