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Productivity and Labor Density: Agglomeration Effects over Time

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  • Yoshiaki Ushifusa
  • Akinori Tomohara

Abstract

This paper studies whether agglomeration benefits a clustering region through increased labor productivity by uniquely analyzing agglomeration effects in ecology oriented industries in Kitakyushu, Japan. Our empirical model further extends previous work by introducing a time dimension into the analysis. This enables us to incorporate technological progress and isolate the impact of interest rates on productivity. The past literature has not isolated these effects. Since our model explores whether higher productivity results from increased density over time, it provides policy implications, such as on the effects of labor immigrants and on aging communities. Copyright International Atlantic Economic Society 2013

Suggested Citation

  • Yoshiaki Ushifusa & Akinori Tomohara, 2013. "Productivity and Labor Density: Agglomeration Effects over Time," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(2), pages 123-132, June.
    • Handle: RePEc:kap:atlecj:v:41:y:2013:i:2:p:123-132
    DOI: 10.1007/s11293-012-9354-y
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    More about this item

    Keywords

    Agglomeration; Density; Labor productivity; R10;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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