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...Economic geography and wages mary amiti lisa cameron international monetary fund cepr university of melbourne abstract this paper estimates the agglomeration benets that arise from vertical linkages between rms we identify o spatial variation in nominal using unusually detailed intermediate input data take account location suppliers to estimate cost demand nal consumers other results show externalities are quantitatively im portant highly localized an increase either or th percentile increases by more than jel classications f l r key words would like thank bill gri ths gordon hanson keith head russ hilberry david hummels wolfgang keller guay lim stephen redding john romalis tony venables for their comments has been presented at nber summer institute cambridge european research workshop trade munich empirical investigations work shop atlanta north east universities development consortium conference yale new york federal reserve world bank seminar paticipants valuable introduction manufa...