Localization of Industry and Vertical Disintegration

  title={Localization of Industry and Vertical Disintegration},
  author={Thomas J. Holmes},
This paper considers the argument of Marshall that concentration of industry at a single location allows for a ner division of labor in the industry than would be possible if the industry were di used over a wide area. I use Census data on manufacturing plants to examine the relationship between localization of industry and vertical disintegration. I nd that establishments located near other establishments within the same industry tend to make more intensive use of purchased inputs than… CONTINUE READING
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