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Analysis of Industrial Agglomeration Patterns: An Application to Manufacturing Industries in Japan

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  • Tomoya Mori

    ()
    (Institute of Economic Research, Kyoto University)

  • Tony E. Smith

    ()
    (Department of Electrical and Systems Engineering, University of Pennsylvania)

Abstract

The standard approach to studying industrial agglomeration is to construct summary measures of the “degree of agglomeration” within each industry and to test for significant agglomeration with respect to some appropriate reference measure. But such summary measures often fail to distinguish between industries that exhibit substantially different spatial patterns of agglomeration. In a previous paper, a cluster-detection procedure was developed that yields a more detailed spatial representation of agglomeration patterns (Mori and Smith [28]). This methodology is here applied to the case of manufacturing industries in Japan, and is shown to yield a rich variety of agglomeration patterns. In addition, to analyze such patterns in a more quantitative way, a new set of measures is developed that focus on both the global extent and local density of agglomeration patterns. Here it is shown for the case of Japan that these measures provide a useful classification of pattern types that reflect a number of theoretical findings in the New Economic Geography.

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Bibliographic Info

Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 794.

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Length: 45pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:kyo:wpaper:794

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Keywords: Industrial Agglomeration; Cluster Analysis; Spatial Patterns of Agglomerations; New Economic Geography;

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  1. Takatoshi Tabuchi & Jacques-Francois Thisse, 2003. "Regional Specialization, Urban Hierarchy, and Commuting Costs," CIRJE F-Series CIRJE-F-223, CIRJE, Faculty of Economics, University of Tokyo.
  2. Akamatsu, Takashi & Takayama, Yuki & Ikeda, Kiyohiro, 2012. "Spatial discounting, Fourier, and racetrack economy: A recipe for the analysis of spatial agglomeration models," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1729-1759.
  3. Mori, Tomoya, 1997. "A Modeling of Megalopolis Formation: The Maturing of City Systems," Journal of Urban Economics, Elsevier, vol. 42(1), pages 133-157, July.
  4. Tomoya Mori & Tony E. Smith, 2009. "An Industrial Agglomeration Approach to Central Place and City Size Regularities," KIER Working Papers 687, Kyoto University, Institute of Economic Research.
  5. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
  6. Fujita, Masahisa & Mori, Tomoya, 1997. "Structural stability and evolution of urban systems," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 399-442, August.
  7. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2004. "A Divergence Statistic for Industrial Localization," KIER Working Papers 587, Kyoto University, Institute of Economic Research.
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