A Spatial Analysis Of Endogenous Growth In Industry And Services In The Netherlands (original) (raw)

This paper brings together two important strands of literature on the relationship between knowledge spillovers and employment growth. The first strand tests for evidence of enogenous growth linked to knowledge and knowledge spillovers between economic agents within cities and the second tests whether knowledge spills over between economic agents in different locations. The link between these two topics is made by extending the work of Glaeser, Kallal, Schienkman, and Schliefer (1992) to develop a spatial lag model that allows employment growth in one location to affect growth in other locations. The empirical work presented focuses on the province of South-Holland, the Netherlands. A key finding reported here is that local industrial diversity and increased local competition tend to promote growth. Additionally results in this study suggest that knowledge spillovers in one location can lead to growth in other locations although the magnitude of this effect appears to be small.