Work

Internal versus external economies in European industry

Year: 1990

Type: article

Abstract: This paper presents estimates of indexes of internal returns to scale and external economies for two-digit manufacturing industries in the four European countries for which the requisite data are available in adequate length: West Germany, France, the U.K., and Belgium. Overall, we find very little evidence of internal increasing returns to scale: of the thirteen two-digit industries, only Rubber and Plastic Products, Agricultural and Industrial Machinery, and Mineral Products exhibit any significant internal increasing returns to scale, and for none of the three is internal increasing returns present in more than two of the four countries. Evidence of external economies, on the other hand, exists for all four countries, the effects of which are especially strong in France and Belgium.

Source: European Economic Review

DOI: 10.1016/0014-2921(90)90060-c

Authors: Ricardo J. Caballero, Richard K. Lyons

Institution: Columbia University

Language: English

Topic: Agglomeration and Urban Systems

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,690