The concentration factors of logistic activities 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 The concentration factors of logistic activities - The case of French warehousing companies Sophie MASSON - Romain PETIOT Univ. Perpignan Via Domitia Acteurs, Ressources et Territoires dans le Développement (ART-Dev), UMR 5281 F-66860, Perpignan, France 1

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Introduction Logistic infrastructures: major tools of logistics services production at the core of the Supply Chain. A strong geographic concentration of logistic infrastructures (Masson et Petiot, 2014). What are the factors of polarization warehousing activities in France? What is the role of agglomeration economies in the spatial concentration of warehousing activities? The concentration factors of logistic activities - The case of French warehousing companies S. Masson / R. Petiot 2

Results, limits and perspectives 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Contents Location of freight transport and storage activities on the French metropolitan territory Theoretical framework and methodology for estimating agglomeration effects Econometric tests Results, limits and perspectives The concentration factors of logistic activities - The case of French warehousing companies S. Masson / R. Petiot 3

Geographical concentration observed in a number of metropolitan areas: 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Location of freight transport and warehousing activities on the French metropolitan territory Strong trends of the concentration-decentralization of the logistics warehousing activities. Geographical concentration observed in a number of metropolitan areas: The United-States (Dablanc and Ross, 2012 ; Cidell, 2010); The United-Kingdom (McKinnon, 2009); The Netherlands (Van den Heuvel et al., 2013); Belgium (Strale, 2013a, b); France (Masson and Petiot, 2014 ; Raimbault et al., 2013 ; Wemelbeke and Mariotte, 2007). The concentration factors of logistic activities - The case of French warehousing companies S. Masson / R. Petiot 4

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 The concentration factors of logistic activities - The case of French warehousing companies S. Masson / R. Petiot 5

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 The concentration factors of logistic activities - The case of French warehousing companies S. Masson / R. Petiot 6

(percent of the national total) 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Job distribution of the warehousing activities by administrative region (percent of the national total) Specialization in jobs in warehousing in French regions   The concentration factors of logistic activities - The case of French warehousing companies S. Masson / R. Petiot 7

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Theoretical framework and methodology for estimating agglomeration effects Hypothesis : the process of concentration of logistics activities results from the research of externalities. Agglomeration economies. 2 elements of agglomeration economies : The urbanisation economies related to the population concentration and the presence of a large number of companies from various sectors in the same zone    inter-sectorial agglomeration economies; The location economies related to the presence of a large number of companies from the same industry in the same area: MAR externalities  intra-sectorial agglomeration economies. The concentration factors of logistic activities - The case of French warehousing companies S. Masson / R. Petiot 8

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Theoretical framework and methodology for estimating agglomeration effects Production model specification: Cobb-Douglass function Urbanisation economies 𝑙𝑛 𝑃𝑇 𝑖𝑧 = ∝+ 𝛽𝑙𝑛 𝐷𝐸 𝑧 + 𝜀 𝑧 (1) where 𝑃𝑇 𝑖𝑧 denotes the productivity at the labour cost for firm 𝑖 located in the employment zone 𝑧; and 𝐷𝐸 𝑧 denotes the job density in the employment zone 𝑧. 𝑙𝑛 𝑃𝑇 𝑖𝑧 = ∝+ 𝛽𝑙𝑛 𝐷𝐸 𝑧 + 𝛾𝑙𝑛 𝑆𝑈𝑅𝐹 𝑧 + 𝜀 𝑧 (2) where 𝑆𝑈𝑅𝐹 𝑧 denotes the surface area of the employment zone 𝑧 (to estimate the influence of the size of the employment area and the effect of density in the case of a given surface area). 𝑙𝑛 𝑃𝑇 𝑖𝑧 = ∝+ 𝛽𝑙𝑛 𝐷𝐸𝑇𝐵 𝑧 + 𝛾𝑙𝑛 𝑆𝑈𝑅𝐹 𝑧 + 𝜀 𝑧 (3) where 𝐷𝐸𝑇𝐵 𝑧 denotes the companies density in the employment zone 𝑧. 9

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Theoretical framework and methodology for estimating agglomeration effects Location economies  Role of the intra-sectorial density 𝑙𝑛 𝑃𝑇 𝑖𝑧 = ∝+ 𝛽𝑙𝑛 𝐷𝐸𝐻 𝑧 + 𝛾𝑙𝑛 𝑆𝑈𝑅𝐹 𝑧 + 𝜀 𝑧 (4) where 𝐷𝐸𝐻 𝑧 denotes the job density for the Freight transport and warehousing sector in the employment zone 𝑧. 𝑙𝑛 𝑃𝑇 𝑖𝑧 = ∝+ 𝛽𝑙𝑛 𝐷𝐸𝑇𝐵𝐻 𝑧 + 𝛾𝑙𝑛 𝑆𝑈𝑅𝐹 𝑧 + 𝜀 𝑧 (5) where 𝐷𝐸𝑇𝐵𝐻 𝑧 denotes the density of the Freight transport and warehousing companies in the employment zone 𝑧.  Role of specialisation 𝑙𝑛 𝑃𝑇 𝑖𝑧 = ∝+ 𝛽𝑙𝑛 𝑆𝑃𝐸𝐶𝐻 𝑧 + 𝜀 𝑧 (6) where 𝑆𝑃𝐸𝐶𝐻 𝑧 denotes the job specialisation for the Freight transport and warehousing sector in the employment zone 𝑧. Agglomeration economies 𝑙𝑛 𝑃𝑇 𝑖𝑧 = ∝+ 𝛽𝑙𝑛 𝐷𝐸 𝑧 + 𝛾𝑙𝑛 𝑆𝑃𝐸𝐶𝐻 𝑧 + 𝛿𝑙𝑛 𝑆𝑈𝑅𝐹 𝑧 + 𝜀 𝑧 (7) 10

3. Econometric tests 55th congress ERSA Data World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 3. Econometric tests Data French annual survey of transport firms (2006-2007); Group 52.1 "Warehousing and storage"; 1,284 observations in the basic sample  546 observations after a database clean-up. The dependent variable productivity at the labour cost : annual turnover / annual remunerations. Individual observations at employment zone level. 11

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 ² Economies d’urbanisation Economies de localisation Economies d’agglomération Urbanisation economies Location economies Agglomeration economies 12

55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Urbanisation economies Location economies Agglomeration economies 13

Location deseconomies 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 4. Resultats, limits and perspectives Urbanisation economies Weak relation between job density and productivity at the labour cost; Weak relation between companies density and productivity at the labour cost; Significantly negative elasticity (between -4.8% and -8.2%). Location economies Weak relation between Freight transport and warehousing job density and productivity at the labour cost; Weak relation between Freight transport and warehousing companies density and productivity at the labour cost; Significantly negative elasticity (between -4.7% and -7.2%). High relation between job specialisation for the Freight transport and warehousing sector and productivity at the labour cost; Highly significantly negative elasticity (between -20.4% and -20.7%) Location deseconomies 14

Agglomeration deseconomies 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 4. Resultats, limits and perspectives Agglomeration economies The geographical proximity, intra-sectorial or inter-sectorial, does not seem to be a cause of performance gains for warehousing companies in France Agglomeration deseconomies 15

4. Resultats, limits and perspectives 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 4. Resultats, limits and perspectives Limits: Sample narrowness; Exclusive observation of single-establishments companies; Consideration of the productivity to the labor cost only; Lack of some variables in the specifications (market area, impact of the industrial chains...). Perspectives: Increasing sample; Testing other production functions; Improving dependent variable (TFP) ; Estimating the role of the market size, the market accessibility or the equipment endowment, etc. 16

Thank you for your attention! 55th congress ERSA World Renaissance: Changing roles for people and places Lisbon, Portugal - 25-28 August 2015 Thank you for your attention! 17