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Determinants of Industrial Coagglomeration and Establishment-level Productivity

Author

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  • Fujii, Daisuke
  • Nakajima, Kentaro
  • Saito, Yukiko Umeno

Abstract

This paper investigates the relationships between determinants of industrial coagglomeration and establishment-level productivity. For each pair of industries, we first construct degree of coagglomeration and indices for three factors of coagglomeration: inter-firm transactions, knowledge spillover, and labor market pooling. We then examine correlation between these three factors and degree of coagglomeration. Overall, inter-firm transactions and labor market pooling are positively correlated with the degree of coagglomeration whereas knowledge spillover has no significant relationship with coagglomeration. We also find that determinants of coagglomeration are quite different across industries. Further, we examine relationships between these factors and establishment-level productivity. In the results, we find that determinants of coagglomeration are not necessarily positively associated with productivity of establishments.

Suggested Citation

  • Fujii, Daisuke & Nakajima, Kentaro & Saito, Yukiko Umeno, 2016. "Determinants of Industrial Coagglomeration and Establishment-level Productivity," HIT-REFINED Working Paper Series 57, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:remfce:57
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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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