Determinants of agglomeration economies and diseconomies (original) (raw)
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Agglomeration economies in urban manufacturing industries: A case of Japanese cities
Journal of Urban Economics, 1985
Agglomeration economies are usually divided into two categories: urbanization economies and localization economies. In 80's a number of attempts have been devoted to estimate urbanization economies and/or localization economies. After the work by Glaeser et al. in 1992, however, historical effects on agglomeration called dynamic externalities in agglomeration are tried to estimate extensively. These externalities are named as MAR in a dynamic sense, and traditional agglomeration economies are evaluated in static sense. Besides urbanization and localization, more traditional sources of industrial concentration are found in industrial linkages, such as customer and supplier linkages or backward and forward linkages. These linkage effects come from the concentration of different kinds of industries while localization economies mean the benefit from the concentration of firms within the same industry. Also, linkage effects are often referred as pecuniary externalities. This paper tries to make clear those agglomeration concepts and construct an estimable model of linkage effects among industries as well as agglomeration economies, and to estimate these effects separately within a framework of the Translog production function. In this model intermediate inputs play an important role as linkage effects. The empirical analysis is based on two-digit data for manufacturing industries in Japanese cities. Estimated results with regard to agglomeration economies vary significantly among the two-digit industries.
Journal of Transport and Land Use
Understanding the impact of transport systems on the spatial agglomeration of urban facilities is critical for urban and transport planning. Recent studies show three separate mechanisms, including matching, sharing, and trip chaining on the agglomeration of commercial facilities, but little is known about which of these mechanisms is dominant and how its dominance varies across transport systems. Aiming at empirically investigating the mechanisms, we first calculate a simple agglomeration index for 69 Japanese cities and then explore the association between the index and city-level characteristics (including transport) using a decision tree analysis. The results confirm that (1) cities with larger areas and higher train shares experience agglomeration, presumably through matching and/or trip chaining, while cities with smaller areas have less agglomeration despite high train shares; and (2) car-dependent cities experience agglomeration, presumably through sharing, particularly by a...
Consumption Side Agglomeration Economies in Japanese Cities
2008
We estimate the consumption values of urban agglomeration economies and social overhead capital for Japanese metropolitan areas. Following the pioneering work of Tabuchi and Yoshida (2000), our approach exploits the fact that consumers tolerate higher living costs if they benefit from urban agglomeration economies and/or better social overhead capital. This living cost approach requires an appropriate measure of the representative
Empirical Studies on the Sources of Agglomeration Economies
2015
2 previous empirical studies. It performs an empirical examination of the model with regional panel data of the manufacturing sector in Japan. A city level panel data constructed mainly from the Census of Manufacturers for the 1996−2006 is used for empirical analysis. The revenue function including parameters for the transportation costs of each industry is estimated. The results support the existence of positive transportation costs, and show the estimated transportation costs for the manufacturing sector are higher than those for the primary sector and lower than those for the service sector. Chapter 3 Plant Productivity Dynamics and Private and Public R&D Spillovers: Technological, Geographic and Relational Proximity Chapter 3 investigates the knowledge spillovers and examines the effects of R&D spillovers on total factor productivity (TFP) with a large panel of Japanese manufacturing plants matched with R&D survey data (1987–2007). This chapter simultaneously examines the role o...
The spatial effect of intra-metropolitan agglomeration economies
2007
Resumen This study deals with the role of spatial accessibility to agglomeration economies in the change in spatial structure of industrial employment for the case of the Barcelona Metropolitan Region of Barcelona (BMR). Using the growth in gross density of municipal ...
2007
In this paper, using census data from the assembly industry during the period 1960-2000, we attempt to expand the knowledge about how innovation and imitation lead to the exploitation of long-term subcontract networks and agglomeration economies; thus having an effect on an improvement in productivity. To this end, a data envelopment analysis is employed to decompose productivity into innovation and imitation. The main findings make it evident that as time passes innovation most noticeably tends to occur towards the outskirts of the core area, and that the level of efficiency readily improves in areas where the division of labor is advanced by relatively small establishments.
Review of Urban & Regional Development Studies, 2014
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.
The magnitude and causes of agglomeration economies
Firms and workers are much more productive in large and dense urban environments. There is substantial evidence of such agglomeration economies based on three aproaches. First, on a clustering of production beyond what can be explained by chance or comparative advantage. Second, on spatial patterns in wages and rents. Third, on systematic variations in productivity with the urban environment. However, more needs to be learned about the causes of agglomeration economies. We have good models of agglomeration through sharing and matching, but not a deep enough understanding of learning in cities. Despite recent progress, more work is needed to distinguish empirically between alternative causes.
An Overview of Investigations Concerning Agglomerations in Regional Economy
Èkonomika Regiona, 2022
The concentration of organisations in a city or region allows companies to receive benefits without additional costs and increase their productivity. It has been empirically proven that urbanisation and localisation effects of agglomerations contribute to economic growth and development, and therefore should be taken into account in regional and urban policies. The article considers the factors of agglomeration formation, their specific development and impact on the economy of regions and cities. The paper examines studies on the territorial distribution of companies and the population, including creative capital, showing the connection with innovative systems and knowledge capital. The research demonstrates how international trade, market competition, the transport system development and many other factors affect agglomerations. The study of agglomeration processes intersects with other fields of science, such as evolutionary economics, cluster organisation, specialisation and diversification, demography of firms. To cover the topic, works in the field of agglomeration processes were systematised by using time-domain, terminological and geographical analysis, as well by studying definitions and typology, based on data obtained from Google Scholar and Web of Science for 1959-2018. It is revealed that agglomerations are considered in such scientific fields as economics, geography, regional urban planning, urban studies, management and regional studies. The key terms are agglomeration economy (economics), localisation, urbanisation, agglomeration forces, agglomerative and deglomerative factors. These works are geographically distributed, and most of them are conducted in the USA (mainly at the