Productivity and the Density of Local Clusters

  • Rui Baptista
Part of the Advances in Spatial Science book series (ADVSPATIAL)


Several streams of theoretical literature, including regional and urban economics, economic geography and economic growth, explain the geographic concentration of economic activity as the result of increasing returns to scale in production. In one strand of literature, agglomeration results from demand linkages between firms, which are created by the interaction of fixed production costs and transport costs (see, for instance, Krugman 1991). In other, earlier strand of literature, agglomeration economies arise from positive spillovers between firms that share the same locality (Henderson 1974, Lucas 1988). This second stream suggests that if there are spillovers in the accumulation of human capital, a worker will be more productive the greater the agglomeration of educated workers with which he/she shares a given location.


Human Capital Labor Productivity Total Factor Productivity American Economic Review Knowledge Spillover 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2003

Authors and Affiliations

  • Rui Baptista
    • 1
    • 2
  1. 1.Catholic University of PortugalPortoPortugal
  2. 2.School of Policy and Environmental AffairsIndiana UniversityBloomingtonUSA

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