Publication
Strong local clusters help firms compete on global markets. One explanation for this is that firms benefit from locating close to their suppliers and customers.
However, the emergence of global supply chains shows that physical proximity is not necessarily a prerequisite to successfully manage customer-supplier relations anymore. This raises the question when firms need to colocate in value chains and when they can coordinate over longer distances.
We hypothesize that one important aspect is the extent to which supply chain partners exchange not just goods but also know-how. To test this, we build on an expanding literature that studies the drivers of industrial coagglomeration to analyze when supply chain connections lead firms to colocation.
We exploit detailed micro-data for the Hungarian economy between 2015 and 2017, linking firm registries, employer-employee matched data and firm-to-firm transaction data from value-added tax records. This allows us to observe colocation, labor flows and value chain connections at the level of firms, as well as construct aggregated coagglomeration patterns, skill relatedness and input-output connections between pairs of industries.
We show that supply chains are more likely to support coagglomeration when the industries involved are also skill related. That is, input-output and labor market channels reinforce each other, but supplier connections only matter for colocation when industries have similar labor requirements, suggesting that they employ similar types of know-how.
We corroborate this finding by analyzing the interactions between firms, showing that supplier relations are more geographically constrained between companies that operate in skill related industries.
S. Juhász, Z. Elekes, V. Ilyés, F. Neffke, Colocation of skill related suppliers – Revisiting coagglomeration using firm-to-firm network data, arXiv (2024) 2405.07071.
Signup
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 1 year | Set by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Analytics" category. |
cookielawinfo-checkbox-functional | 1 year | The GDPR Cookie Consent plugin sets the cookie to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 1 year | Set by the GDPR Cookie Consent plugin, this cookie records the user consent for the cookies in the "Necessary" category. |
CookieLawInfoConsent | 1 year | CookieYes sets this cookie to record the default button state of the corresponding category and the status of CCPA. It works only in coordination with the primary cookie. |
PHPSESSID | session | This cookie is native to PHP applications. The cookie stores and identifies a user's unique session ID to manage user sessions on the website. The cookie is a session cookie and will be deleted when all the browser windows are closed. |
viewed_cookie_policy | 1 year | The GDPR Cookie Consent plugin sets the cookie to store whether or not the user has consented to use cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
mec_cart | 1 month | Provides functionality for our ticket shop |
VISITOR_INFO1_LIVE | 6 months | YouTube sets this cookie to measure bandwidth, determining whether the user gets the new or old player interface. |
VISITOR_PRIVACY_METADATA | 6 months | YouTube sets this cookie to store the user's cookie consent state for the current domain. |
YSC | session | Youtube sets this cookie to track the views of embedded videos on Youtube pages. |
yt-remote-connected-devices | never | YouTube sets this cookie to store the user's video preferences using embedded YouTube videos. |
yt-remote-device-id | never | YouTube sets this cookie to store the user's video preferences using embedded YouTube videos. |
yt.innertube::nextId | never | YouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen. |
yt.innertube::requests | never | YouTube sets this cookie to register a unique ID to store data on what videos from YouTube the user has seen. |
Cookie | Duration | Description |
---|---|---|
_ga | 1 year | Google Analytics sets this cookie to calculate visitor, session and campaign data and track site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognise unique visitors. |
_ga_* | 1 year | Google Analytics sets this cookie to store and count page views. |
_gat_gtag_UA_* | 1 min | Google Analytics sets this cookie to store a unique user ID. |
_gid | 1 day | Google Analytics sets this cookie to store information on how visitors use a website while also creating an analytics report of the website's performance. Some of the collected data includes the number of visitors, their source, and the pages they visit anonymously. |