The agglomeration of U.S.-owned and foreign-owned plants across the U.S. States

Agglomeration in U.S. manufacturing is more common than initially thought. This clustering arises from location natural advantages and spillovers. Extant studies on agglomeration do not distinguish the activities of U.S.-owned plants from those that are foreign owned. This distinction is crucial since policies seem to have differential impacts on both types of plants. I find that industry scale, resource intensity and urbanization economies have larger impacts on foreign plant agglomeration whereas knowledge intensity has a larger effect on domestic plant agglomeration. Received: September 2001/Accepted: April 2002 I would like to thank the UNO University Committee on Research for support of this project and Ke Yang for invaluable research assistance. The paper has benefited from the comments made by an anonymous referee. The usual caveats apply.