The Greenstone et al paper discusses research that aims at identifying agglomeration externalities for manufacturing pla
Posted: Wed Jul 06, 2022 6:18 pm
The Greenstone et al paper discusses research that aims atidentifying agglomeration externalities for manufacturing plants.Now let’s think about firms in the business services sector, suchas business financial services, engineering consulting, etc.Discuss two sources of agglomeration economies that applyspecifically to the service sector. One of the upshots from theGreenstone paper was that wages increase in winning countiesrelative to the runner-up counties. Would we expect to see the sametendency in the service industry as well? Why / why not? Explainthoroughly