Assessing agglomeration economies in the Yangzi River Delta, China : a bayesian spatial econometric approach
AbstractThis paper estimates the magnitude of agglomeration economies in the Yangzi River Delta, China, by using the empirical model proposed by Chen and Hashiguchi (2010). The model is an extension of the Ciccone-Hall model (Ciccone and Hall 1996), and enables us to take into account both the endogeneity problem and spatial autocorrelation without instrumental variables in the estimation. County-level data for Shanghai, Jiangsu, and Zhejiang in 2009 and Bayesian methods are used to estimate the model. As a result, the magnitude is found to be insignificant. This indicates that the effect of agglomeration economies is very weak in this area, and so regional development policies for enhancing the interaction among firms and the linkage between industries are required to increase the benefit of agglomeration.
Download InfoIf 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.
Bibliographic InfoPaper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 339.
Date of creation: Mar 2012
Date of revision:
Publication status: Published in IDE Discussion Paper. No. 339. 2012.3
Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-10 (All new papers)
- NEP-GEO-2012-04-10 (Economic Geography)
- NEP-PBE-2012-04-10 (Public Economics)
- NEP-TRA-2012-04-10 (Transition Economics)
- NEP-URE-2012-04-10 (Urban & Real Estate Economics)
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.:
- Antonio Ciccone & Robert E. Hall, 1995.
"Productivity and the density of economic activity,"
Economics Working Papers
120, Department of Economics and Business, Universitat Pompeu Fabra.
- Brülhart, Marius & Mathys, Nicole A., 2008.
"Sectoral agglomeration economies in a panel of European regions,"
Regional Science and Urban Economics,
Elsevier, vol. 38(4), pages 348-362, July.
- Brülhart, Marius & Mathys, Nicole Andréa, 2007. "Sectoral Agglomeration Economies in a Panel of European Regions," CEPR Discussion Papers 6410, C.E.P.R. Discussion Papers.
- Marius BRÜLHART & Nicole A. MATHYS, 2007. "Sectoral Agglomeration Economies in a Panel of European Regions," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 07.04, Université de Lausanne, Faculté des HEC, DEEP.
- Michael J. Artis & Ernest Miguélez & Rosina Morenos, 2011.
"Assessing agglomeration economies in a spatial framework with endogenous regressors,"
IREA Working Papers
201112, University of Barcelona, Research Institute of Applied Economics, revised Jul 2011.
- Michael Artis & Ernest Miguélez & Rosina Moreno, 2009. "Assessing Agglomeration Economies in a Spatial Framework with Endogenous Regressors," SERC Discussion Papers 0023, Spatial Economics Research Centre, LSE.
- Artis, Michael J & Miguélez, Ernest & Moreno, Rosina, 2009. "Assessing agglomeration economies in a spatial framework with endogenous regressors," CEPR Discussion Papers 7267, C.E.P.R. Discussion Papers.
- 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.
- Eberts, Randall W. & McMillen, Daniel P., 1999. "Agglomeration economies and urban public infrastructure," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 38, pages 1455-1495 Elsevier.
- Diego Puga, 2010.
"The Magnitude And Causes Of Agglomeration Economies,"
Journal of Regional Science,
Wiley Blackwell, vol. 50(1), pages 203-219.
- Diego Puga, 2009. "The magnitude and causes of agglomeration economies," Working Papers 2009-09, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Lourens Broersma & Jan Oosterhaven, 2009. "Regional Labor Productivity In The Netherlands: Evidence Of Agglomeration And Congestion Effects," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 483-511.
- Kelejian, Harry H & Prucha, Ingmar R, 1998. "A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 99-121, July.
- Tanaka, Kiyoyasu & Hashiguchi, Yoshihiro, 2012. "Spatial spillovers from FDI agglomeration : evidence from the Yangtze River Delta in China," IDE Discussion Papers 354, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Hashiguchi, Yoshihiro & Tanaka, Kiyoyasu, 2013. "Agglomeration and firm-level productivity : a Bayesian spatial approach," IDE Discussion Papers 403, Institute of Developing Economies, Japan External Trade Organization(JETRO).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Kobayashi).
If references are entirely missing, you can add them using this form.