EMPIRICAL ANALYSIS OF AGGLOMERATION ECONOMIES IN THE JAPANESE ASSEMBLY-TYPE MANUFACTURING INDUSTRY FOR 1985-2000: USING AGGLOMERATION AND COAGGLOMERATION INDICES

This empirical study finds that positive but weak agglomeration economies resulted from the agglomeration of Japan's assembly‐type manufacturing industry during 1985–2000. Estimation results particularly indicate positive externalities from coagglomeration and very slightly increasing returns t...

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Bibliographic Details
Published inReview of urban and regional development studies Vol. 26; no. 1; pp. 57 - 79
Main Authors Tokunaga, Suminori, Kageyama, Masahiro, Akune, Yuko, Nakamura, Ryohei
Format Journal Article
LanguageEnglish
Published Oxford Blackwell Publishing Ltd 01.03.2014
Subjects
Agglomeration
Classification
Indexes
Manufacturing
Production functions
Production management
Studies
Japan
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Summary:This empirical study finds that positive but weak agglomeration economies resulted from the agglomeration of Japan's assembly‐type manufacturing industry during 1985–2000. Estimation results particularly indicate positive externalities from coagglomeration and very slightly increasing returns to scale. Traditional studies conceive of agglomeration economies as being related to localization and urbanization. We, however, estimate a flexible translog production function using four‐digit Standard Industrial Classification industry panel data and Ellison and Glaeser's agglomeration index with the same industry and coagglomeration index with different industry groups. We theoretically obtain appropriate and significant results without the homotheticity restriction.
Bibliography:istex:03C05ACF4C64773CBDD6241C585608FA97E45D19
ArticleID:RURD12019
ark:/67375/WNG-FH9N5WFT-B
ISSN:0917-0553
1467-940X
DOI:10.1111/rurd.12019