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Beyond Marshallian Agglomeration Economies: The Roles of Trade Associations in Meiji Japan

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  • Hashino, Tomoko
  • Kurosawa, Takafumi

Abstract

In both developed Western nations and developing countries, economic growth was based on the development of industrial districts, which were much more organized and institutionalized in modern Japan than economist Alfred Marshall had described. Local trade associations played an important role in enhancing Marshallian externalities, arising from the ease of imitating improved ideas and transacting unfinished products among clustered enterprises by facilitating joint actions in the supply of public goods, such as through the creation of local district brands and through the efficient provision of business information. These activities were clearly beyond the scope of agglomeration economies. This article examines the case of Kiryu, one of the best-known silk weaving districts in Japan.

Suggested Citation

  • Hashino, Tomoko & Kurosawa, Takafumi, 2013. "Beyond Marshallian Agglomeration Economies: The Roles of Trade Associations in Meiji Japan," Business History Review, Cambridge University Press, vol. 87(3), pages 489-513, October.
    • Handle: RePEc:cup:buhirw:v:87:y:2013:i:03:p:489-513_00
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    Cited by:

    1. Masaki Nakabayashi, 2017. "Honesty, Diligence and Skill: Risk Sharing and Specialization in the Kiryu Silk Weaving Cluster, Japan," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1401-1424, November.
    2. Yuya Aikawa & Tomoko Hashino & Keijiro Otsuka, 2023. "Agglomeration with the Declining Marshallian Agglomeration Economies:An inquiry into the postwar development of the Nada sake brewing district in Japan," Discussion Papers 2308, Graduate School of Economics, Kobe University.

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