Important Readings And Respective Questions

Question 1

W3: Greenstone et al (2010)
Main research question? Why is it important?

Answer 1

(1) How productivity of incumbent plants is affect by the opening of a large new plant in the region (clustering)

(2) Understand agglomeration spillovers help justify the allocation of subsidies to attract large firms? Impacting local economies development and resource allocation.

Question 2

W3: Greenstone et al (2010)
How does the paper contribute to our understanding of special clustering of firms and agglomeration spillovers?

Answer 2

It compares productivity change in incumbent plants in countries that win or lose a new large plant, highlighting economics impacts of spatial clustering

Question 3

W3: Greenstone et al (2010)
Main identification challenges?

Answer 3

OVB
Reverse causality
Non-randomization