Empirical analysis of agglomeration economies in the Japanese assembly-type manufacturing industry for 1985-2000: Using agglomeration and coagglomeration indices

Suminori Tokunaga, Masahiro Kageyama, Yuko Akune, Ryohei Nakamura

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5 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)57-79
Number of pages23
JournalReview of Urban and Regional Development Studies
Volume26
Issue number1
DOIs
Publication statusPublished - Mar 2014

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manufacturing industry
empirical analysis
agglomeration
agglomeration area
manufacturing
economy
industry
flexible production
returns to scale
production function
panel data
urbanization
Japan
index
Group

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development

Cite this

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AU - Nakamura, Ryohei

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AB - 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.

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