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Vertical disintegration in Marshallian industrial districts

Title
Vertical disintegration in Marshallian industrial districts
Type
Article in International Scientific Journal
Year
2010
Authors
Octávio Figueiredo
(Author)
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Paulo Guimaraes
(Author)
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Douglas Woodward
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Journal
Vol. 40 No. 1
Pages: 73-78
ISSN: 0166-0462
Publisher: Elsevier
Indexing
Scientific classification
FOS: Social sciences > Other social sciences
Other information
Authenticus ID: P-003-CKF
Abstract (EN): This paper uses a novel approach and detailed plant-level Portuguese data to reexamine the Marshallian hypothesis that specialization and the vertical disintegration of firms should be greater in areas where an industry concentrates. Our measure of firm specialization and vertical disintegration employs a Herfindhal index constructed with occupational shares for all workers within the firm. Controlling for firm size and sector of activity, we find that vertical disintegration is higher in areas where industries agglomerate. Sensitivity tests reveal that this positive relation is remarkably robust across different specifications.
Language: English
Type (Professor's evaluation): Scientific
No. of pages: 6
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