Empirical Analysis of Agglomeration Economies in Japanese Assembly-type Manufacturing Industry for 1985-2000: Using a flexible translog production function
For Japan's assembly-type manufacturing industry which is composed of general machinery, electrical machinery, equipment and suppliers, and transportation equipment for 1985-2000, we estimate flexible translog production function based on Kim (1992) and Tokunaga and Kageyama (2008) using four-digit standard industrial classification (SIC) industry panel data and Ellison and Glaeser's (1997) agglomeration and co-agglomeration indices (with different industry groups) panel data, and obtain theoretically appropriate and significant results without the homotheticity restriction. From these results, we find evidence of positive and weak agglomeration economies on production in Japanese assembly-type manufacturing industry for 1985-2000.
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