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Do historical events matter in geographic agglomeration? The case of South Korea

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  • Jahyeong Koo
  • Yune Lee

Abstract

This study examines whether historical events are as important as Krugman (1991a) had suggested they are in determining geographic agglomeration. Using the time series of Korean manufacturing (1955-2003), which is longer than other country studies, the study also examines how the mean reversion factor and dispersion factor have evolved during substantial economic development. The results confirm that industry mobility in Korea is high and the historical events may not be so important in geographic agglomeration of industries. The analysis of the mean reversion factor and dispersion factor supports the argument that transport costs are a major source of change in geographic agglomeration in the long run.

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  • Jahyeong Koo & Yune Lee, 2006. "Do historical events matter in geographic agglomeration? The case of South Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 13(15), pages 1013-1016.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:15:p:1013-1016
    DOI: 10.1080/13504850500425923
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    References listed on IDEAS

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    1. Barrios, Salvador & Bertinelli, Luisito & Strobl, E. & Teixeira, Antonio-Carlos, 2005. "The dynamics of agglomeration: evidence from Ireland and Portugal," Journal of Urban Economics, Elsevier, vol. 57(1), pages 170-188, January.
    2. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
    3. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 857-880.
    4. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, September.
    5. Wen, Mei, 2004. "Relocation and agglomeration of Chinese industry," Journal of Development Economics, Elsevier, vol. 73(1), pages 329-347, February.
    6. Barrios, Salvador & Strobl, Eric, 2004. "Industry mobility and geographic concentration in the European union," Economics Letters, Elsevier, vol. 82(1), pages 71-75, January.
    7. repec:hhs:iuiwop:430 is not listed on IDEAS
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    1. Alañón Pardo, Ángel & Arauzo Carod, Josep Maria, 2010. "On the effect of the geographical scope of agglomeration economies on firm location," Working Papers 2072/151542, Universitat Rovira i Virgili, Department of Economics.

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