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Agglomeration versus Fragmentation:A Comparison of East Asia and Europe

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  • Hayakawa, Kazunobu
  • JI, Zheng
  • Obashi, Ayako

Abstract

Inspired by the observed contrasting patterns of industrial distribution in East Asia and Europe,this paper conducts an empirical clarification of the difference in spatial relationships amongcountries within a region for the electric machinery industry by use of spatial econometricanalysis. The results indicate that, while production in the electric machinery industry in acountry is positively correlated with that of neighboring countries in East Asia, there is nosignificant spatial correlation in Europe. Such a difference in spatial interdependence hasimportant implications for economic development in those regions.

Suggested Citation

  • Hayakawa, Kazunobu & JI, Zheng & Obashi, Ayako, 2009. "Agglomeration versus Fragmentation:A Comparison of East Asia and Europe," IDE Discussion Papers 212, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper212
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    References listed on IDEAS

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    1. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
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    5. Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
    6. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2007. "Estimating models of complex FDI: Are there third-country effects?," Journal of Econometrics, Elsevier, vol. 140(1), pages 260-281, September.
    7. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
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    12. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524.
    13. Bruce A. Blonigen & Ronald B. Davies & Glen R. Waddell & Helen T. Naughton, 2019. "FDI in Space: Spatial Autoregressive Relationships in Foreign Direct Investment," World Scientific Book Chapters, in: Foreign Direct Investment, chapter 2, pages 55-88, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Fukunari Kimura & Ayako Obashi, 2016. "Production Networks in East Asia: What We Know So Far," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 33-64, Springer.

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    More about this item

    Keywords

    Agglomeration; Fragmentation; East Asia; Europe; Local industry; Electric industries;
    All these keywords.

    JEL classification:

    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-
    • N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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