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The Demand- and Supply-Side Spillovers in the Food Manufacturing Industry in Korea: An Empirical Evidence from Both Local Level and Individual Firm Level

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  • An, Donghwan
  • Kim, Kwansoo
  • Kwon, Oh Sang
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    Abstract

    From the perspective of the food system, the overall food manufacturing or processing industry is fundamentally connected both with agricultural production in rural areas and consumption demand usually concentrated in urban areas. Using the local government level and individual firm level data for the food manufacturing industry in Korea, this paper investigated the agglomeration and spillover effects in this industry. This study found that there exist significant productivity differentials over space in food processing industry. This paper also found the evidences of agglomeration economies; the place where the size of population is large performs better. The results showed some evidences of spillover effects; negative externalities from congestions of neighbors and positive spillovers of the increasing accessibility to material input producers in the neighboring regions.

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    File URL: http://purl.umn.edu/20238
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20238.

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    Date of creation: 2004
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    Handle: RePEc:ags:aaea04:20238

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    Keywords: Agribusiness;

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    1. Randall W. Eberts & Daniel P. McMillen, 1999. "Agglomeration Economies and Urban Public Infrastructure," Book chapters authored by Upjohn Institute researchers, in: Paul Cheshire & Edwin S. Mills (ed.), handbook or Regional and Urban Economics, volume 3, pages 1455-1495 W.E. Upjohn Institute for Employment Research.
    2. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    3. Vernon Henderson, 1999. "Marshall's Economies," NBER Working Papers 7358, National Bureau of Economic Research, Inc.
    4. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455.
    5. Domazlicky, Bruce R. & Weber, William, L., 1998. "Determinants of Total Factor Productivity, Technological Change, and Efficiency Differentials Among States, 1977-86," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 19-34, Fall.
    6. Henderson, Vernon & Lee, Todd & Lee, Yung Joon, 2001. "Scale Externalities in Korea," Journal of Urban Economics, Elsevier, vol. 49(3), pages 479-504, May.
    7. Patricia Beeson & Stephen Husted, 1986. "Patterns and determinants of inefficiency in state manufacturing," Working Paper 8603, Federal Reserve Bank of Cleveland.
    8. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
    9. Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 215-237, May.
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