IDEAS home Printed from https://ideas.repec.org/a/oup/jecgeo/v14y2014i3p547-588..html
   My bibliography  Save this article

A probabilistic modeling approach to the detection of industrial agglomerations

Author

Listed:
  • Tomoya Mori
  • Tony E. Smith

Abstract

Dating from the seminal work of Ellison and Glaeser in 1997, a wealth of evidence for the ubiquity of industrial agglomerations has been published. However, most of these results are based on analyses of single (scalar) indices of agglomeration. Hence, it is not surprising that industries deemed to be similar by such indices can often exhibit very different patterns of agglomeration—with respect to the number, size and spatial extent of individual agglomerations. The purpose of this article is thus to propose a more detailed spatial analysis of agglomeration in terms of multiple-cluster patterns, where each cluster represents a (roughly) convex set of contiguous regions within which the density of establishments is relatively uniform. The key idea is to develop a simple probability model of multiple clusters, called cluster schemes, and then to seek a ‘best’ cluster scheme for each industry by employing a standard model-selection criterion. Our ultimate objective is to provide a richer characterization of spatial agglomeration patterns that will allow more meaningful comparisons of these patterns across industries.

Suggested Citation

  • Tomoya Mori & Tony E. Smith, 2014. "A probabilistic modeling approach to the detection of industrial agglomerations," Journal of Economic Geography, Oxford University Press, vol. 14(3), pages 547-588.
    • Handle: RePEc:oup:jecgeo:v:14:y:2014:i:3:p:547-588.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jeg/lbs062
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brulhart, Marius & Traeger, Rolf, 2005. "An account of geographic concentration patterns in Europe," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 597-624, November.
    2. Ikeda, Kiyohiro & Akamatsu, Takashi & Kono, Tatsuhito, 2012. "Spatial period-doubling agglomeration of a core–periphery model with a system of cities," Journal of Economic Dynamics and Control, Elsevier, vol. 36(5), pages 754-778.
    3. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(4), pages 1077-1106.
    4. Tabuchi, Takatoshi & Thisse, Jacques-François, 2011. "A new economic geography model of central places," Journal of Urban Economics, Elsevier, vol. 69(2), pages 240-252, March.
    5. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2005. "A Divergence Statistic for Industrial Localization," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 635-651, November.
    6. Tomoya Mori & Tony E. Smith, 2014. "A probabilistic modeling approach to the detection of industrial agglomerations," Journal of Economic Geography, Oxford University Press, vol. 14(3), pages 547-588.
    7. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    8. Julian Besag & James Newell, 1991. "The Detection of Clusters in Rare Diseases," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 154(1), pages 143-155, January.
    9. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mori, Tomoya & Smith, Tony E., 2015. "On the spatial scale of industrial agglomerations," Journal of Urban Economics, Elsevier, vol. 89(C), pages 1-20.
    2. de Bellefon, Marie-Pierre & Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Gorin, Clément, 2021. "Delineating urban areas using building density," Journal of Urban Economics, Elsevier, vol. 125(C).
    3. Anthony Pagano & Grace Wang & Onésimo Sánchez & Ricardo Ungo & Eddie Tapiero, 2016. "The impact of the Panama Canal expansion on Panama’s maritime cluster," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(2), pages 164-178, February.
    4. de Bellefon, Marie-Pierre & Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Gorin, Clément, 2021. "Delineating urban areas using building density," Journal of Urban Economics, Elsevier, vol. 125(C).
    5. Gokan, Toshitaka & Kuroiwa, Ikuo & Nakajima, Kentaro & Sakata, Shozo, 2016. "Spatial patterns of manufacturing clusters in Vietnam," IDE Discussion Papers 616, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. Dai, Tianran & Schiff, Nathan, 2023. "The structure and growth of ethnic neighborhoods," Journal of Urban Economics, Elsevier, vol. 137(C).
    7. Gerald A. Carlino & Jake Carr & Robert M. Hunt & Tony E. Smith, 2010. "The agglomeration of R&D labs," Working Papers 10-33, Federal Reserve Bank of Philadelphia.
    8. Smirnova, Ekaterina & Khormali, Omid & Egan, Joel M., 2019. "Functional analysis of spatial aggregation regions of Jeffrey pine beetle-attack within the Lake Tahoe Basin," Statistics & Probability Letters, Elsevier, vol. 144(C), pages 57-62.
    9. Tomoya Mori, 2017. "Evolution of the Size and Industrial Structure of Cities in Japan between 1980 and 2010: Constant Churning and Persistent Regularity," Asian Development Review, MIT Press, vol. 34(2), pages 86-113, September.
    10. The Nguyen Huynh, 2022. "Spatial effects of institutional quality on firm performance: evidence from Vietnam," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 36(2), pages 89-105, November.
    11. Wrona, Jens, 2015. "Border effects without borders: What divides Japan's internal trade?," DICE Discussion Papers 185, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    12. Gabriel Lang & Eric Marcon & Florence Puech, 2019. "Distance-Based Measures Of Spatial Concentration: Introducing A Relative Density Function," Working Papers hal-01082178, HAL.
    13. Toshitaka GOKAN & Ikuo KUROIWA & Nuttawut LAKSANAPANYAKUL & Yasushi UEKI, 2015. "Spatial Patterns of Manufacturing Agglomeration in Cambodia, Lao People’s Democratic Republic, and Thailand," Working Papers DP-2015-68, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Gabriel Lang & Eric Marcon & Florence Puech, 2020. "Distance-based measures of spatial concentration: introducing a relative density function," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 243-265, April.
    15. Gokan, Toshitaka & Kuroiwa, Ikuo & Laksanapanyakul, Nuttawut & Ueki, Yasushi, 2016. "Spatial structures of manufacturing clusters in Cambodia, Lao People's Democratic Republic, and Thailand," IDE Discussion Papers 617, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    16. Gokan, Toshitaka & Kuroiwa, Ikuo & Nakajima, Kentaro, 2019. "Agglomeration economies in Vietnam: A firm-level analysis," Journal of Asian Economics, Elsevier, vol. 62(C), pages 52-64.
    17. Tomoya Mori & Tony E. Smith, 2011. "An Industrial Agglomeration Approach To Central Place And City Size Regularities," Journal of Regional Science, Wiley Blackwell, vol. 51(4), pages 694-731, October.
    18. Kossowski Tomasz & Hauke Jan, 2018. "SPAG: A New Measure of Spatial Agglomeration. Theoretical Background and Empirical Examples," Quaestiones Geographicae, Sciendo, vol. 37(4), pages 33-42, December.
    19. Tomoya Mori & Tony E. Smith, 2014. "A probabilistic modeling approach to the detection of industrial agglomerations," Journal of Economic Geography, Oxford University Press, vol. 14(3), pages 547-588.
    20. Jens Wrona, 2018. "Border Effects Without Borders: What Divides Japan's Internal Trade?," CESifo Working Paper Series 7056, CESifo.
    21. Akamatsu, Takashi & Mori, Tomoya & Osawa, Minoru & Takayama, Yuki, 2017. "Spatial scale of agglomeration and dispersion: Theoretical foundations and empirical implications," MPRA Paper 80689, University Library of Munich, Germany.
    22. Zhang, Lin & He, Xiaoxia & Jia, Zhenli, 2023. "Industrial agglomeration, public services and city size: Evidence from 286 cities in China," Land Use Policy, Elsevier, vol. 131(C).

    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. Akamatsu, Takashi & Mori, Tomoya & Osawa, Minoru & Takayama, Yuki, 2017. "Spatial scale of agglomeration and dispersion: Theoretical foundations and empirical implications," MPRA Paper 80689, University Library of Munich, Germany.
    2. Mori, Tomoya & Smith, Tony E., 2015. "On the spatial scale of industrial agglomerations," Journal of Urban Economics, Elsevier, vol. 89(C), pages 1-20.
    3. Cutrini, Eleonora, 2009. "Using entropy measures to disentangle regional from national localization patterns," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 243-250, March.
    4. Tomoya Mori & Tony E. Smith, 2009. "A Reconsideration of the NAS Rule from an Industrial Agglomeration Perspective," KIER Working Papers 669, Kyoto University, Institute of Economic Research.
    5. Olga Alonso-Villar, 2011. "Measuring concentration: Lorenz curves and their decompositions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 451-475, October.
    6. Gabriel Lang & Eric Marcon & Florence Puech, 2020. "Distance-based measures of spatial concentration: introducing a relative density function," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 243-265, April.
    7. Tomoya Mori & Tony E. Smith, 2011. "Analysis of Industrial Agglomeration Patterns: An Application to Manufacturing Industries in Japan," KIER Working Papers 794, Kyoto University, Institute of Economic Research.
    8. Dai, Tianran & Schiff, Nathan, 2023. "The structure and growth of ethnic neighborhoods," Journal of Urban Economics, Elsevier, vol. 137(C).
    9. Toshitaka GOKAN & Ikuo KUROIWA & Nuttawut LAKSANAPANYAKUL & Yasushi UEKI, 2015. "Spatial Patterns of Manufacturing Agglomeration in Cambodia, Lao People’s Democratic Republic, and Thailand," Working Papers DP-2015-68, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. HAEDO, Christian & MOUCHART, Michel, 2012. "A stochastic independence approach for different measures of concentration and specialization," LIDAM Discussion Papers CORE 2012025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Gokan, Toshitaka & Kuroiwa, Ikuo & Laksanapanyakul, Nuttawut & Ueki, Yasushi, 2016. "Spatial structures of manufacturing clusters in Cambodia, Lao People's Democratic Republic, and Thailand," IDE Discussion Papers 617, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    13. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
    14. repec:hal:spmain:info:hdl:2441/8001 is not listed on IDEAS
    15. William R. Kerr & Scott Duke Kominers, 2015. "Agglomerative Forces and Cluster Shapes," The Review of Economics and Statistics, MIT Press, vol. 97(4), pages 877-899, October.
    16. Valerien O. Pede & Raymond J. G. M. Florax & Henri L. F. de Groot & Gustavo Barboza, 2021. "Technological leadership and sectorial employment growth: A spatial econometric analysis for U.S. counties," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(1), February.
    17. Di Giacinto, Valter & Pagnini, Marcello, 2011. "Local and global agglomeration patterns: Two econometrics-based indicators," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 266-280, May.
    18. Youwei Tan & Zhihui Gu & Yu Chen & Jiayun Li, 2022. "Industry Linkage and Spatial Co-Evolution Characteristics of Industrial Clusters Based on Natural Semantics—Taking the Electronic Information Industry Cluster in the Pearl River Delta as an Example," Sustainability, MDPI, vol. 14(21), pages 1-14, October.
    19. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    20. Gilles Duranton & Henry G. Overman, 2008. "Exploring The Detailed Location Patterns Of U.K. Manufacturing Industries Using Microgeographic Data," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 213-243, February.
    21. Stefania Vitali & Mauro Napoletano & Giorgio Fagiolo, 2013. "Spatial Localization in Manufacturing: A Cross-Country Analysis," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1534-1554, October.

    More about this item

    JEL classification:

    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

    Statistics

    Access and download statistics

    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:oup:jecgeo:v:14:y:2014:i:3:p:547-588.. 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/joeg .

    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.