IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v12y2024i7p163-d1423496.html
   My bibliography  Save this article

Brake Segment for Agglomeration Policy: Engineers as Human Capital

Author

Listed:
  • Akifumi Kuchiki

    (Institute for International Trade and Investment, Tokyo 104-0045, Japan)

Abstract

A “segment” is a component of the organization of an agglomeration. The organization of agglomeration is formed by the construction of segments. Manufacturing agglomeration segments can be divided into four main categories: human resources including engineers, physical infrastructure, institutions, and living environment. Each segment then has a specific function in the process of building industrial agglomeration. We focus on the process of building segments in agglomeration formation. We define a “brake segment” as a segment that has a “function” to decelerate the speed of the process. The purpose of this paper is to identify the existence of this brake segment in the process of constructing the segments of the manufacturing agglomeration. We obtained the following three results. First, a modified version of the spatial economic model yields that the number of agglomerated firms is inversely related to the wages of skilled workers. Second, a factor analysis of the data on investment environment costs indicates that in the case of the manufacturing industry, the number of agglomerated firms are inversely related to the wages of engineers. Third, the factor analysis of the six countries in the JBIC survey reveals that the segment that poses the investment issue in foreign direct investment in India is engineers as human capital. We conclude that engineers as human capital are a brake segment. The implication is that the sustained development of “engineers” as human capital is essential for the success of manufacturing industry agglomeration.

Suggested Citation

  • Akifumi Kuchiki, 2024. "Brake Segment for Agglomeration Policy: Engineers as Human Capital," Economies, MDPI, vol. 12(7), pages 1-28, June.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:7:p:163-:d:1423496
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/12/7/163/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/12/7/163/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yveline Lecler, 2002. "The cluster role in the development of the Thai car industry," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(4), pages 799-814, December.
    2. Henkel, Joachim & Stahl, Konrad & Walz, Uwe, 2000. "Coalition Building in a Spatial Economy," Journal of Urban Economics, Elsevier, vol. 47(1), pages 136-163, January.
    3. Douglas Zhihua Zeng, 2010. "Building Engines for Growth and Competitiveness in China : Experience with Special Economic Zones and Industrial Clusters," World Bank Publications - Books, The World Bank Group, number 2501.
    4. Thomas Farole & Gokhan Akinci, 2011. "Special Economic Zones : Progress, Emerging Challenges, and Future Directions," World Bank Publications - Books, The World Bank Group, number 2341.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khan, Karim, 2019. "Special Economic Zones (SEZs) and Prospects for the Domestic Economy of Pakistan," MPRA Paper 103337, University Library of Munich, Germany.
    2. Solomon Tsehay Feleke & Alemnesh Gebreselassie & Zerayehu Eshete & Asmayit Tekeste & Lulit Mitik Beyene, 2019. "Resource Allocation across Industrial Sectors, Growth, Poverty, and Income Inequality in Ethiopia: A Macro-Micro Approach," Working Papers MPIA 2019-16, PEP-MPIA.
    3. Zhang, Xiaobo, 2016. "Building effective clusters and industrial parks," IFPRI discussion papers 1590, International Food Policy Research Institute (IFPRI).
    4. Richard Adu-Gyamfi & Simplice A. Asongu & Tinaye Sonto Mmusi & Herbert Wamalwa & Madei Mangori, 2020. "A comparative study of export processing zones in the wake of the Sustainable Development Goals: The cases of Botswana, Kenya, Tanzania, and Zimbabwe," WIDER Working Paper Series wp-2020-64, World Institute for Development Economic Research (UNU-WIDER).
    5. Guangwen Meng & Douglas Zhihua Zeng, . "Structural transformation through free trade zones: the case of Shanghai," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    6. Radko Radev, 2022. "Strategic Entrepreneurship as a Main Factor for the Development of Economic Zones in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 86-110.
    7. Zeng,Zhihua, 2015. "Global experiences with special economic zones : focus on China and Africa," Policy Research Working Paper Series 7240, The World Bank.
    8. Douglas Zhihua Zeng, 2016. "Global Experiences of Special Economic Zones with Focus on China and Africa: Policy Insights," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-27, October.
    9. International Monetary Fund, 2014. "Republic of Congo: Selected Issues," IMF Staff Country Reports 2014/273, International Monetary Fund.
    10. Venables, Anthony & Duranton, Gilles, 2018. "Place-Based Policies for Development," CEPR Discussion Papers 12889, C.E.P.R. Discussion Papers.
    11. Kelemen, József, 2020. "Szimultán Hotelling-modell Cobb-Douglas-hasznosságfüggvénnyel [A simultaneous Hotelling model with a Cobb-Douglas utility function]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 14-30.
    12. Coulibaly, Souleymane, 2012. "Rethinking the form and function of cities in post-Soviet countries," Policy Research Working Paper Series 6292, The World Bank.
    13. Pietrobelli, Carlo, 2019. "Modern industrial policy in Latin America: Lessons from cluster development policies," MERIT Working Papers 2019-031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Kazumichi Iwasa & Toru Kikuchi, 2009. "Indirect network effects and the impact of trade liberalization: A note," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(4), pages 541-552.
    15. Defever, Fabrice & Reyes, José-Daniel & Riaño, Alejandro & Varela, Gonzalo, 2020. "All these worlds are yours, except india: The effectiveness of cash subsidies to export in nepal," European Economic Review, Elsevier, vol. 128(C).
    16. Lu, Ren & Ruan, Min & Reve, Torger, 2016. "Cluster and co-located cluster effects: An empirical study of six Chinese city regions," Research Policy, Elsevier, vol. 45(10), pages 1984-1995.
    17. Louisiana Cavalcanti Teixeira, 2020. "Labor standards and social conditions in free trade zones: the case of the Manaus free trade zone," Post-Print hal-02997102, HAL.
    18. Marta Castilho & Marta Menéndez & Aude A. Sztulman, 2015. "Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone?," Working Papers halshs-01245394, HAL.
    19. Shenggen Fan & Ravi Kanbur & Shang-Jin Wei & Xiaobo Zhang, 2013. "The Economics of China: Successes and Challenges," NBER Working Papers 19648, National Bureau of Economic Research, Inc.
    20. Sourish Dutta, 2024. "Review of Strategies and Policies for Enhanced Participation in Global Value Chains," Post-Print hal-04661503, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:12:y:2024:i:7:p:163-:d:1423496. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.