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Agglomeration or Selection? The Case of the Japanese Silk-Reeling Clusters, 1908-1915

Author

Listed:
  • Arimoto, Yutaka
  • Nakajima, Kentaro
  • Okazaki, Tetsuji

Abstract

We examine two sources of productivity improvement in the specialized industrial clusters of the early twentieth century Japanese silk-reeling industry. Agglomeration improves the productivity of each plant through positive externalities, shifting plant-level productivity distribution to the right. Selection expels less productive plants through competition, truncating distribution on the left. We find no evidence confirming a right shift in the distribution in clusters or that agglomeration promotes faster productivity growth. Rather, the distribution in clusters was severely left truncated, even for younger plants. These findings imply that the plant-selection effect was the source of higher productivity in the Japanese silk-reeling clusters.

Suggested Citation

  • Arimoto, Yutaka & Nakajima, Kentaro & Okazaki, Tetsuji, 2011. "Agglomeration or Selection? The Case of the Japanese Silk-Reeling Clusters, 1908-1915," CEI Working Paper Series 2010-11, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hitcei:2010-11
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    File URL: https://hit-u.repo.nii.ac.jp/record/2057902/files/wp2010-11.pdf
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    Cited by:

    1. Syed Hasan & Alessandra Faggian & H. Allen Klaiber & Ian Sheldon, 2018. "Agglomeration Economies or Selection? An Analysis of Taiwanese Science Parks," International Regional Science Review, , vol. 41(3), pages 335-363, May.
    2. Hashino, Tomoko & Otsuka, Keijiro, 2012. "Hand looms, power looms, and changing production organizations: the case of the Kiryu weaving district in the early 20th century Japan," Economic History Working Papers 41659, London School of Economics and Political Science, Department of Economic History.
    3. Antonio Accetturo & Valter Di Giacinto & Giacinto Micucci & Marcello Pagnini, 2018. "Geography, productivity, and trade: Does selection explain why some locations are more productive than others?," Journal of Regional Science, Wiley Blackwell, vol. 58(5), pages 949-979, November.
    4. Valter Di Giacinto & Matteo Gomellini & Giacinto Micucci & Marcello Pagnini, 2014. "Mapping local productivity advantages in Italy: industrial districts, cities or both?," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 365-394.
    5. Shengjun Zhu & Canfei He & Xinming Xia, 2019. "Geography of productivity: evidence from China’s manufacturing industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 141-168, February.
    6. Tomoko Hashino & Keijiro Otsuka, 2013. "Hand looms, power looms, and changing production organizations: the case of the Kiryū weaving district in early twentieth-century Japan," Economic History Review, Economic History Society, vol. 66(3), pages 785-804, August.
    7. Hashino, Tomoko & Otsuka, Keijiro, 2012. "Hand looms, power looms, and changing production organizations: the case of the Kiryu weaving district in the early 20th century Japan," LSE Research Online Documents on Economics 41659, London School of Economics and Political Science, LSE Library.

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    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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