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eBook details

• Title: Empirical Estimation of Agglomeration Economies Associated with Research Facilities (Research on Regional Development)
• Author : Atlantic Economic Journal
• Release Date : January 01, 2004
• Genre: Business & Personal Finance,Books,
• Pages : * pages
• Size : 274 KB

Description

Introduction Locating a large firm or facility in a region can fuel economic development through three main avenues. The effects most discussed in the economic literature are the direct and indirect impacts. The direct impacts stem from the effects of salaries, the purchases of services and supplies from local firms, retirement payments to former employees, and local and state taxes. The indirect impacts are generated when these direct dollars are re-spent in the local and regional economies. These effects are well known and the impacts are assessed through a variety of standard techniques, including economic base analysis and I-O analysis. In addition to the direct and indirect impacts, agglomeration economies can arise when the presence of a large facility attracts firms and workers that are not related to the facility. For example, the increase in economic activity and employment resulting from the completion of a large facility may generate new infrastructure such as highways and airports. This, in turn, may attract transportation and other firms.

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