Geographic Concentration and Establishment Scale

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Abstract
This paper shows that plants located in areas where an industry concentrates are larger, on average, than plants in the same industry outside such areas. In some sectors, such as manufacturing, the differences are substantial. The connection between size and concentration is stronger than what we would expect to find if plants were randomly distributed like darts on a dartboard. © 2002 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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