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Articles

Profiting from Agglomeration? Evidence from the Salmon Aquaculture Industry

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Pages 1742-1754 | Received 12 Mar 2012, Accepted 03 Mar 2015, Published online: 14 Jul 2015
 

Abstract

Asche F., Roll K. H. and Tveteras R. Profiting from agglomeration? Evidence from the salmon aquaculture industry, Regional Studies. Even though most celebrated clusters seem to be in high-cost areas, many econometric studies represent agglomeration externalities as increased primal productivity or reduced cost. While this certainly can be consistent with some observed agglomeration effects, it may be insufficient for the growth of a cluster. The key condition for this is that profitability is higher. The paper tests for agglomeration effects using a profit function approach. This may be particularly important for firms in high-cost clusters, where revenue effects can be as important as productivity and cost effects. The paper tests for both intra- and inter-industry agglomeration externalities using firm-level data.

Asche F., Roll K. H. and Tveteras R. 从聚集中获益?来自鲑鱼水产业的证据,区域研究。即便最被讚扬的集群皆位于高消费的地区,诸多计量经济研究,仍将聚集外部性再现为增加的原始生产力或减少的支出。虽然此般再现,的确与部分观察到的聚集效应相符合,但对集群的成长而言,却可能不够充分。而上述的核心条件,是收益性较高。本文运用利润函数方法,检验聚集效应,而这对在高支出的集群中的厂商而言,可能特别重要,其中税收效应可以与生产力和支出效应一样重要。本文运用厂商层级数据,检验产业聚集之中和之间的外部性。

Asche F., Roll K. H. et Tveteras R. Profiter de l'agglomération? Des résultats provenant de l'aquaculture du saumon, Regional Studies. Bien que la plupart des clusters de renommée se trouvent dans les zones à coûts élevés, beaucoup des études économétriques présentent les effets d'agglomération externes comme une augmentation de la productivité primaire ou une baisse des coûts. Alors que cela peut être compatible avec certains effets d'agglomération, il pourrait s'avérer insuffisant pour assurer la croissance d'un cluster. La condition préalable en est l'augmentation de la rentabilité. À partir d'une analyse de la fonction de profit, cet article cherche à tester les effets d'agglomération. Cela pourrait être particulièrement important pour les entreprises faisant partie des clusters à coûts élevés, où les effets sur les recettes pourraient s'avérer aussi importants que ne le sont les effets sur la productivité et sur les coûts. À partir des données recueillies à l’échelle des entreprises, cet article fait des tests pour déterminer la présence des effets d'agglomération externes intra et interindustriels.

Asche F., Roll K. H. und Tveteras R. Gewinn durch Agglomeration? Belege aus der Branche der Lachs-Aquakultur, Regional Studies. Obwohl sich die berühmtesten Cluster in kostenintensiven Gebieten zu befinden scheinen, werden Agglomerationsexternalitäten in vielen ökonometrischen Studien als erhöhte Grundproduktivität oder verringerte Kosten dargestellt. Dies entspricht zwar sicherlich einigen beobachteten Agglomerationseffekten, reicht aber als Erklärung für das Wachstum eines Clusters eventuell nicht aus. Die wichtigste Vorbedingung hierfür liegt in einer höheren Rentabilität. In diesem Beitrag werden die Agglomerationseffekte mithilfe eines Gewinnfunktionsansatzes überprüft. Dies könnte vor allem für Firmen in kostenintensiven Clustern von Bedeutung sein, wo die Einnahmeeffekte eine ebenso wichtige Rolle spielen können wie die Produktivitäts- und Kosteneffekte. Mithilfe von Daten auf Firmenebene werden die Agglomerationsexternalitäten innerhalb einer Branche sowie zwischen verschiedenen Branchen überprüft.

Asche F., Roll K. H. y Tveteras R. ¿Beneficios de la aglomeración? Ejemplo del sector de acuicultura del salmón, Regional Studies. Aunque las agrupaciones más célebres parecen estar en zonas de coste elevado, muchos estudios econométricos representan las externalidades de aglomeración como productividad principal aumentada o coste reducido. Mientras que sin duda esto puede ser coherente con algunos efectos de aglomeración observados, podría ser insuficiente para el crecimiento de una agrupación. La condición más importante radica aquí en una rentabilidad más alta. En este artículo comprobamos los efectos de aglomeración mediante un enfoque de función de beneficio. Esto podría ser especialmente significativo para empresas en agrupaciones de elevado coste, donde los efectos en los ingresos pueden ser tan importantes como los efectos en la productividad y el coste. A partir de datos de empresas, comprobamos las externalidades de aglomeración tanto dentro como entre los diferentes sectores.

JEL classifications:

Notes

1 Among the early studies following Hall (Citation1990) using aggregated (sector) data were Caballero and Lyons (Citation1990, Citation1992) and Bartelsman et al. (Citation1994). Examples of later studies using disaggregated (firm, worker) data are Graham et al. (Citation2010) and Martin et al. (Citation2011).

2 Also for outputs thicker markets can be important, as it can make it profitable to produce more specialized outputs.

3 This is one reason why a cluster can disappear when the rate of innovation is reduced, as the advantages of innovation and knowledge sharing does not compensate for the higher input factor costs in the cluster. The origins of the tyre industry in Ohio and how it left the region is an interesting example (Krugman, Citation1991).

4 See Parr (Citation2002) for a more recent classification of these agglomeration economies.

5 See Asche (Citation2008) for a recent description of the development of salmon aquaculture.

6 Increased use of information technology-based on-farm technologies, and more frequent monitoring of biophysical parameters and the condition of the fish biomass, has contributed to higher productivity among farms, as the ability to discover adverse conditions in the production process has increased.

7 Other external factors that could affect profit may also be evaluated in such a framework. Hulten and Schwab (Citation1993) investigate how public infrastructure affects production, and Paul and Siegel (Citation1998) explore whether externalities affecting productivity and cost might stem from external knowledge factors resulting from investment in research and development (R&D), high-technology and human capital.

8 As r is not a choice variable for the firm, an adaptive response by the firm is not possible even in the long run. SVπ r is, therefore, merely a construct, as the potential profit incentive from a one unit increase in r can never be achieved by the firm's own actions.

9 The Cobb–Douglas from is a special restricted case of the translog, with all second-order parameters restricted to zero, and has the disadvantage compared with the translog that it does not allow for variable substitution patterns, scale economies etc. in the explanatory variables.

10 One of the share equations has to be deleted to obtain a non-singular covariance matrix. The estimates are then asymptotically equivalent to maximum likelihood estimates and invariant to which equation is deleted (Barten, Citation1969).

11 Conversely, it is also possible that agglomeration externalities through increased competition in input markets cause lower input prices.

12 New licences are awarded infrequently, lastly in 2002 and 2008, and in the period between it was not possible to obtain a new licence.

13 The share equation of salmon output was dropped to avoid singularity.

Additional information

Funding

This work was supported by the Norwegian Research Council (Norges forskningsråd) [grant number 234121/E40].

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