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Figure . US Regions, divisions and states defined by the US Census Bureau Source: US Census Bureau.
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Despite the expanding role of services in the global economy, economic history has paid little attention to their geographic localization. This paper provides a description of the increasing specialization and localization patterns of services across US counties compared to other sectors from 1930 to 2010. It stresses that market potential influenc...
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Context 1
... where Knowledge Intensive Services seem to surpass the geographical agglomeration of manufacturing since . (See Appendix A., figure A.) The concentration indicators from US Census employment data are shown in figure for Agriculture, Manufacturing, aggregate Services, and KIBS for each region by year. ...Citations
... Various investigations have therefore looked into the relevance of agglomeration economies in this area (e.g., Desmet and Fafchamps 2006;Kolko 2010). From a historical perspective and adapting the model described by Midelfart-Knarvik et al. (2000), Cermeño (2018) analyzes the evolution of services in US counties from 1930 to 2000, along with the forces that drive their location across space. Her results lead her to conclude that since 1980, market potential has encouraged the agglomeration of knowledge-intensive services and that this has come about near large clusters of population and manufacturing. ...
The chapter revises those areas of research in which economic history and economic geography come together fundamentally, making use of the theoretical framework developed by New Economic Geography. Particularly, we first analyze the role played by economic geography in helping us to understand the patterns of production specialization and the remuneration and mobility of the factors of production (capital and labor) at different points in history. Secondly, we look at how these aspects may have been affected over time from a more dynamic perspective, taking into account the possible effects generated by technological and institutional changes and shocks such as military conflicts and border changes. In other words, we analyze possible variations in the patterns described in the previous section as a result of changes characteristic of the history of societies. Next, we focus on how the joint consideration of economic geography and history may lead to a better understanding of the differences that exist between income levels across space. Finally, a review of the literature that – from the perspective of historical economic geography – seeks to analyze the predictions emerging from these types of models as regards the evolution of territorial inequality, also noting the advances that have been made in the reconstruction of macroeconomic aggregates on a regional scale from economic history, is provided. The chapter ends with a brief section detailing the limits and challenges of this type of approach and speculating as to which path future research might follow
... Various investigations have therefore looked into the relevance of agglomeration economies in this area (e.g., Desmet and Fafchamps 2006;Kolko 2010). From a historical perspective and adapting the model described by Midelfart-Knarvik et al. (2000), Cermeño (2018) analyzes the evolution of services in US counties from 1930 to 2000, along with the forces that drive their location across space. Her results lead her to conclude that since 1980, market potential has encouraged the agglomeration of knowledge-intensive services and that this has come about near large clusters of population and manufacturing. ...
... In addition, the literature suggests that services are characterized by their inseparability that usually requires close supplier-client contact or face-to-face interaction between the provider and customers [29], [32]. Services therefore tend to attract more opportunities for adaptation [30]. ...
bold xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">Background:
Website adaptation is widely regarded as a strategic priority for successful cross-cultural business communication.
Literature review:
Drawing upon Hofstede's and Schwartz's cultural theories and the standardization/localization paradigm, this study conducts a quantitative analysis on the adaptative strategy performed by Chinese multinational corporations (MNCs) on their US websites and its influencing factors.
Research questions:
1. To what extent have Chinese MNCs adapted their US websites to the US culture? 2. Are product, organizational and managerial factors associated with the degree of website adaptation?
Research methodology:
This study first used content analysis to examine the cultural manifestation on Chinese MNCs’ US websites and then quantitatively measured their degree of website adaptation. The association between the adaptation degree and its influencing factors was tested through a regression analysis.
Results and conclusion:
The results indicated that Chinese MNCs have adapted their US websites to the US culture to a large extent. Product type, degree of internationalization, and firm size were significantly correlated with the adaptation degree, yet the association between products’ technological intensity, top management's international experiences, and the adaptation degree was not confirmed. This study extends the website adaptation literature by making an initial attempt to calibrate the degree of cultural adaptation reflected on corporate websites. It also provides fresh insights into how website adaptation can be impacted by a series of company-level factors. In addition, this study contributes to the field of technical and professional communication by suggesting effective ways for firms to make proper strategic decisions on cross-cultural web communication.
... Although services account for a larger share of manufacturing output now than before, it is not a significant share yet (although for some countries it is larger than 50 percent). Alternatively, knowledge-intensive business services seem to have sprung up in disappearing manufacturing clusters (Cermeño 2018(Cermeño , 2019. And these knowledge hubs were originally related to the proximity to manufacturing clusters (Marshall 1880, Hall 1902. ...
... Relating the case of wood-based industry, Hoover, Marshall and Porter emphasized the major drivers for resource-driven industries are the adequate supply, quality and price of the primary inputs as well highlighted the importance of distance in raw materials and industries' connection (Cermeño, 2019;Martin & Tulla, 2019;Mola-Yudego et al., 2014;Rahman & Kabir, 2019). As for the wood-based industry, the primary input or the raw materials will be logs, sawntimber, wood waste, wood chips, plywood and veneer, etc., in manufacturing the wood products in Peninsular Malaysia. ...
This article aims to shed the light about the important geographical factors that influence the localization of Peninsular Malaysia timber mills to further understand the employment of sustainable timber industry practice as well as proposing the general raw materials’ supply chain in Peninsular Malaysia timber industry. This study is performed by using secondary data from Moderate Resolution Imaging Spectroradiometer land cover V6 MCD12Q1 data of NASA LPDAAC Collections from US Geological Survey and Malaysia Timber Industry Board for geographical factors as well as primary, secondary and tertiary timber mills’ information, respectively. The analysis from negative binomial regression analysis reveals that the geographical location for logs’ storage and transportation is affecting the primary timber mills’ localization, while a number of primary mills and secondary mills are affecting by the locations of raw materials’ supplies. This study gives an impactful insight for the Peninsular Malaysia timber industry in creating the timber industry’s policy regarding the roles of timber mills as the linkages in coordinating a sustainable timber industry.
... As for intermediate historical outcomes, we look at various measures of technological progress and structural change, among them: value added in manufacturing, horsepower per manufacturing establishment, and the number of retail and financial establishments in 1930, as well as numerous present-day high-tech industry measures from the County Business Patterns (2012), Cermeño (2019), and Lexis/Nexis Ci Technology Database (2016). ...
... Using the County Business Patterns (2012) data set collected by the US Census Bureau, Table 10, columns (1-3), confirm the correlation of 1880 engineering density with the number of high-tech industries in a county, as well as payroll and employment in these sectors. This measure is also correlated with the incidence of Knowledge Intensive Business Services (KIBSs) employed by Cermeño (2019Cermeño ( ) in 2010Cermeño ( and 1980 and (6)), but also historically-as early as 1930 (in column (4)). Across this 80 year span, the coefficient on 1880 engineering density remains remarkably constant, speaking to the persistence of the human capital effect. ...
... -(3)). Knowledge Intensive Business Sectors (KIBS) for 1930, 1980 and 2010 in columns (4-6) are taken fromCermeño (2019). Investments in technology are taken from the Ci Technology Database (2016). ...
This paper offers the first systematic historical evidence on the role of a central actor in modern growth theory: the engineer. We construct a database on the share of engineers in the labor force during the Second Industrial Revolution (1870–1914) at the county level for the US, and the state and national levels for the Americas. These measures are robustly correlated with income today after controlling for literacy, other types of higher order human capital (college graduates, lawyers, physicians, patenting) and demand side factors, as well as after instrumenting engineering using the 1862 US Land Grant Colleges program. Differences in engineering density in 1880 account for 10% higher US county incomes today, while national disparities in engineering density can explain approximately a quarter of the income divergence in the Americas. To document the mechanisms through which engineering density works, we show how it is correlated with higher rates of technology adoption and structural transformation across intermediate time periods, and with numerous measures of the knowledge economy today.
... Although services account for a larger share of manufacturing output now than before, it is not a significant share yet (although for some countries it is larger than 50 percent). Alternatively, knowledge-intensive business services seem to have sprung up in disappearing manufacturing clusters (Cermeño 2018a(Cermeño , 2018b. The share of knowledge-intensive business services in gross value added of GDP in constant dollars since the 1950s in the U.S. increased from under 20 percent to over 35 percent, while the share of manufacturing and other services stayed roughly the same. ...
... The share of knowledge-intensive business services in gross value added of GDP in constant dollars since the 1950s in the U.S. increased from under 20 percent to over 35 percent, while the share of manufacturing and other services stayed roughly the same. Cermeño (2018aCermeño ( , 2018b shows that knowledge-intensive business services tend to be concentrated in densely populated areas although they could be done remotely. She argues that large local markets largely explain the localization of these services. ...
... 18 These estimates show that both phases of university establishments had a higher shorter-term growth effect on the established counties as regards population, GDP and local market size. The coefficients reflect the fact that the effect of these universities was 16 The 2SLS strategy was tested using other instruments such as global centrality (the inverse of the sum of all bilateral distances between counties) multiplied by the year to allow time variation, as done by Head and Mayer (2010) and Cermenõ (2018), or the distance to the land-grant universities, yielding very similar results. Including all three instruments in the regression reports similar coefficients but a lower, yet significant, F-statistic (69.244). ...
... This paper emphasizes the possibility that new universities may be endogenous to variations in local market size. Higher levels of GDP in urban areas tend to be linked to higher provision of services, as posited by Mankiw (1997), Krueger and Lindahl (2001), Kantor and Whalley (2014a) and Cermenõ (2018). This section extends previous findings by analyzing the microeconomic mechanisms of the model presented in Section 3. The idea is that new universities increase local human capital stock, thus affecting local productivity. ...
This paper explores the impact of new universities established in the USA between 1931 and 1980 on population density, GDP and market size measured from 1930 to 2010. The analysis is based on differences in differences on counties selected through propensity score matching, as well as an instrumental variable approach. The evidence suggests that counties hosting a university for the first time grew by between 1% and 3% annually on top of the general trends of population density and GDP growth, and that this effect expanded to neighboring counties. Controlling for research intensity and interstate road infrastructure shows that the potential gains from these new universities were severely constrained by the ease of access, which eventually resulted in higher congestion costs. These results point to a situation where new universities create spillover effects that eventually fade away if not accompanied by additional investments.
We re-examine the long-run geographical development of US manufacturing industries using recent advances in spatial concentration measures. We construct spatially weighted indices of the geographical concentration between 1880 and 2007 taking into account industrial structure and checkerboard problem. New results emerge. Average spatial concentration was much lower in the late 20th than in the late 19th century, and it was the outcome of a continuing reduction over time. Spatial concentration did not increase in the early 20th century but declined, and we find no inverted-U shape pattern of long-run spatial concentration. The persistent tendency to greater spatial dispersion was characteristic of most industries.
