Self-reinforcing Agglomerations? An Empirical Industry Study

We test for the existence of endogenous agglomeration forces, using structural econometric models. After showing generally how to establish the existence of agglomeration forces empirically, we undertake an industry study of the maritime industry in Norway. The results suggest that there are significant economies of scale in the maritime industry. These economies of scale are mainly found in sub-groups of a set of nine maritime industries. This indicates that the maritime industry consists of two self-reinforcing agglomerations, but that there are few mechanisms actually keeping the two together.
JEL classification: C 33; D 24; O 47; R 11; R 12