Koo, JunLall, Somik V.2012-06-262012-06-262005-01https://hdl.handle.net/10986/9000Economic geography has become a mantra for many economists, geographers, and regional scientists. Previous studies have tested the importance of economic geography for production activities and found a significant association between them. Most of these studies, however, have not taken into account that economic geography influences location decisions at the firm level. The authors show a potential bias that can arise when firm location choices are not considered in estimating the contribution of economic geography to industry performance. Their analysis using microdata of Indian manufacturing firms shows there is an upward bias in the contribution of economic geography to productivity when firm location choices are not considered in the analysis.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING PRINCIPLESALTERNATIVE APPROACHBASIC METALSBOOK VALUECITY SIZECOALCONCENTRATION INDEXESCONSUMER SURPLUSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT STRATEGIESECONOMETRICSECONOMIC ANALYSISECONOMIC BENEFITSECONOMIC GEOGRAPHYECONOMIC IMPLICATIONSECONOMIC PERFORMANCEECONOMIC RESEARCHECONOMICSECONOMISTSEMPIRICAL STUDIESEMPLOYMENTEQUILIBRIUMEXTERNALITIESEXTERNALITYFOOD PRODUCTSFUELSGROSS VALUEHIGH LEVELSINCREASING RETURNSINCREASING RETURNS TO SCALEINTERNATIONAL TRADEINVENTORYLABOR FORCELABOR PRODUCTIVITYLAND USELARGE CITIESMONOPOLISTIC COMPETITIONNATURAL RESOURCESNEGATIVE EXTERNALITIESPETROLEUMPOLITICAL ECONOMYPOLLUTIONPOPULATION DENSITYPRODUCT DIFFERENTIATIONPRODUCTION ACTIVITIESPRODUCTION COSTSPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTION PROCESSPRODUCTIVITYPRODUCTIVITY INCREASESPURCHASING POWERQUALITY OF LIFESPILLOVERSTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRANSPORTURBAN AREASURBANIZATIONWorld Bank10.1596/1813-9450-3465