The New Economic Geography literature has experienced an impressive success in economic theory. At the same time, the empirical evidence about the forces and mechanisms emphasized by this literature is growing. Nevertheless, there is still much to be gained from empirical analysis. The main objective of this work is thus to help mind this gap by providing further evidence on the relevance of agglomeration forces for the distribution of economic activities. We address this task from an eclectic perspective using both descriptive and structural approaches. We also pay particular attention to plants' heterogeneity and its interaction with spatial externalities. Our results are consistent with the hypothesis that pecuniary externalities stemming from final consumption and input-output linkages play an important role in location choice. Furthermore, while big plants are more sensitive to very localized externalities, small units display a stronger spatial correlation pattern and can be found more easily close to big consumers' markets.

The New Economic Geography literature has experienced an impressive success in economic theory. At the same time, the empirical evidence about the forces and mechanisms emphasized by this literature is growing. Nevertheless, there is still much to be gained from empirical analysis. The main objective of this work is thus to help mind this gap by providing further evidence on the relevance of agglomeration forces for the distribution of economic activities. We address this task from an eclectic perspective using both descriptive and structural approaches. We also pay particular attention to plants' heterogeneity and its interaction with spatial externalities. Our results are consistent with the hypothesis that pecuniary externalities stemming from final consumption and input-output linkages play an important role in location choice. Furthermore, while big plants are more sensitive to very localized externalities, small units display a stronger spatial correlation pattern and can be found more easily close to big consumers' markets.