A Note on the Efficiency Effects of Agglomeration Economies: Turkish Evidence

Document Type

Article

Source of Publication

Journal of Reviews on Global Economics

Publication Date

6-30-2014

Abstract

By using a very novel dataset from Turkish SMEs, this paper investigates the effects of agglomeration economies on productive and allocative efficiency. After controlling for unobserved heterogeneity at the time level, our empirical results from ordered panel probit models provide evidence that clusters have no statistically significant effect on productive efficiency but a negative effect on allocative efficiency. We also show that the increase in prices is not due to increased product differentiation; therefore, it is most likely due to collusion.

ISSN

1929-7092

Volume

3

First Page

186

Last Page

189

Disciplines

Business

Keywords

SMEs, Cluster, Competitiveness, Productive and Allocative Efficiency, Ordered Panel Probit Models

Indexed in Scopus

no

Open Access

yes

Open Access Type

Bronze: This publication is openly available on the publisher’s website but without an open license

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