Abstract
In this paper, we estimate the impact of dynamic externalities, using direct measures of total factor productivity (TFP) growth at the regional level. We find that, at the one-digit level, significant dynamic externalities exist for the finance, services, and wholesale and retail trade industries, but-contrary to the findings of most previous research-these externalities do not exist for the manufacturing industry. © 2002 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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