Advanced Search
MyIDEAS: Login to save this paper or follow this series

Measuring Economic Localization: Evidence from Japanese Firm-level Data

Contents:

Author Info

  • Nakajima, Kentaro
  • Saito, Yukiko Umeno
  • Uesugi, Iichiro

Abstract

This paper examines location patterns of Japan’s manufacturing industries using a unique firm-level dataset on the geographic location of firms. Following the point-pattern approach proposed by Duranton and Overman (2005), we find the following. First, about half of Japan’s manufacturing industries can be classified as localized and the number of localized industries is largest for a distance level of 40 km or less. Second, several industries in the textile mill products sector are among the most localized, which is similar to findings for the UK, suggesting that there exist common factors across countries determining the concentration of industrial activities. Third, the distribution of distances between entrant (exiting) firms and remaining firms is, in most industries, not significantly different from a random distribution. These results suggest that most industries in Japan neither become more localized nor more dispersed over time and are in line with similar findings by Duranton and Overman (2008) for the UK. Fourth, a comparison with the service sector indicates that the share of localized industries is higher in manufacturing than in services, although the extent of localization among the most localized manufacturing industries is smaller than that among the most localized service industries, including financial service industries

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/19327/1/ifn_wp010.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University in its series Working Paper Series with number 10.

as in new window
Length: 32 p.
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:hit:cinwps:10

Note: August 23, 2011
Contact details of provider:
Postal: 2-1 Naka, Kunitachi City, Tokyo 186
Phone: +81-42-580-9138
Fax: +81-42-580-8333
Email:
Web page: http://www.ier.hit-u.ac.jp/ifn/
More information through EDIRC

Related research

Keywords: Micro-geographic data; Economic geography;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
  2. Guy Dumais & Glenn Ellison & Edward Glaeser, 1997. "Geographic Concentration as a Dynamic Process," NBER Working Papers 6270, National Bureau of Economic Research, Inc.
  3. Gilles Duranton & Henry G. Overman, 2008. "Exploring The Detailed Location Patterns Of U.K. Manufacturing Industries Using Microgeographic Data," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 48(1), pages 213-243.
  4. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 105(5), pages 889-927, October.
  5. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2004. "A Divergence Statistic for Industrial Localization," KIER Working Papers, Kyoto University, Institute of Economic Research 587, Kyoto University, Institute of Economic Research.
  6. Michael P. Devereux & Rachel Griffith & Helen Simpson, 2000. "The Geographic Distribution of Production Activity in the UK," Econometric Society World Congress 2000 Contributed Papers, Econometric Society 1397, Econometric Society.
  7. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 29(5), pages 575-604, September.
  8. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, American Economic Association, vol. 100(3), pages 1195-1213, June.
  9. Duranton, Gilles & Puga, Diego, 2003. "Microfoundations of Urban Agglomeration Economies," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4062, C.E.P.R. Discussion Papers.
  10. Marshall, Alfred, 1890. "The Principles of Economics," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, McMaster University Archive for the History of Economic Thought, number marshall1890.
  11. Gilles Duranton & Henry G. Overman, 2005. "Testing for localization using micro-geographic data," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 581, London School of Economics and Political Science, LSE Library.
  12. Eric Marcon & Florence Puech, 2010. "Measures of the geographic concentration of industries: improving distance-based methods," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 10(5), pages 745-762, September.
  13. Eric Marcon & Florence Puech, 2003. "Evaluating the geographic concentration of industries using distance-based methods," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 3(4), pages 409-428, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Kentaro Nakajima & Yukiko Saito & Iichiro Uesugi, 2012. "The Localization of Interfirm Transaction Relationships," ERSA conference papers ersa12p503, European Regional Science Association.
  2. NAKAJIMA Kentaro & SAITO Yukiko & UESUGI Iichiro, 2013. "Role of Inter-firm Transactions on Industrial Agglomeration: Evidence from Japanese firm-level data," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13021, Research Institute of Economy, Trade and Industry (RIETI).
  3. NAKAJIMA Kentaro & SAITO Yukiko Umeno & UESUGI Iichiro, 2012. "Localization of Interfirm Transaction Relationships and Industry Agglomeration," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12023, Research Institute of Economy, Trade and Industry (RIETI).
  4. Nobuaki Yamashita & Toshiyuki Matsuura & Kentaro Nakajima, 2013. "Agglomeration effects of inter-firm backward and forward linkages: evidence from Japanese manufacturing investment in China," Keio/Kyoto Joint Global COE Discussion Paper Series, Keio/Kyoto Joint Global COE Program 2012-042, Keio/Kyoto Joint Global COE Program.
  5. Steven Brakman & Harry Garretsen & Zhao Zhao, 2014. "Spatial Concentration of Manufacturing Firms in China," CESifo Working Paper Series 4872, CESifo Group Munich.
  6. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2013. "Localization of Collaborations in Knowledge Creation," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13070, Research Institute of Economy, Trade and Industry (RIETI).
  7. SAITO Yukiko, 2013. "Role of Hub Firms in Geographical Transaction Network," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 13080, Research Institute of Economy, Trade and Industry (RIETI).
  8. INOUE Hiroyasu & NAKAJIMA Kentaro & SAITO Yukiko, 2014. "Localization of Knowledge-creating Establishments," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 14053, Research Institute of Economy, Trade and Industry (RIETI).
  9. Eric Marcon & Florence Puech, 2012. "A typology of distance-based measures of spatial concentration," Working Papers, HAL halshs-00679993, HAL.
  10. TOKUNAGA Suminori & KAGEYAMA Masahiro & AKUNE Yuko & NAKAMURA Ryohei, 2012. "Empirical Analysis of Agglomeration Economies in Japanese Assembly-type Manufacturing Industry for 1985-2000: Using a flexible translog production function," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 12082, Research Institute of Economy, Trade and Industry (RIETI).
  11. Kristian Behrens & Théophile Bougna, 2013. "An Anatomy of the Geographical Concentration of Canadian Manufacturing Industries," Cahiers de recherche, CIRPEE 1327, CIRPEE.
  12. Nakajima, Kentaro & Saito, Yukiko Umeno & Uesugi, Iichiro, 2012. "The Localization of Interfirm Transaction Relationships and Industry Agglomeration," Working Paper Series, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University 17, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hit:cinwps:10. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.