Nikhil R. Kalathil

Manufacturing Strategy & Policy | Supply-Chain & Technology Policy | Economic Development & Dynamism

Latest Publication

Short-Term Economic Dynamism as a Policy Tool to Address Supply Shortages During Crises

Industrial and Corporate Change, 2023

This paper develops new theory for how states and nations can better leverage firm entry into critical products to address shortages during crisis situations.

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Working Papers

Varieties of Agglomeration: Disentangling Features of Horizontal and Vertical Agglomeration within the Manufacturing Sector in the United States

Kalathil, N., Lanahan, L., Feldman, M., Fuchs, E. (2024)Under Review

We introduce a novel measure of agglomeration that differentiates between horizontal (co-location with the own/peer industries) and vertical (co-location with suppliers) agglomeration. Using employment and establishment data at the US county level and the six-digit industry level, we demonstrate that industries and regions vary in their degree of vertical versus horizontal agglomeration. Industries with a higher contribution of manufactured goods to overall inputs’ value are correlated with vertical agglomeration while more R&D intensive industries are correlated with horizontal agglomeration. Using the semiconductor industry as an example, we illustrate how heterogeneity in industry-county rates of vertical and horizontal agglomeration might reflect differences in the products that firms operating in different counties manufacture. These industry-level and within-industry differences are not observable with existing agglomeration measures. We present a new theoretical framework for regional and industrial policy interventions.

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