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Analysis of Industrial Agglomeration Patterns: An Application to Manufacturing Industries in Japan

Author

Listed:
  • Tomoya Mori

    (Institute of Economic Research, Kyoto University)

  • Tony E. Smith

    (Department of Electrical and Systems Engineering, University of Pennsylvania)

Abstract

The standard approach to studying industrial agglomeration is to construct summary measures of the “degree of agglomeration†within each industry and to test for significant agglomeration with respect to some appropriate reference measure. But such summary measures often fail to distinguish between industries that exhibit substantially different spatial patterns of agglomeration. In a previous paper, a cluster-detection procedure was developed that yields a more detailed spatial representation of agglomeration patterns (Mori and Smith [28]). This methodology is here applied to the case of manufacturing industries in Japan, and is shown to yield a rich variety of agglomeration patterns. In addition, to analyze such patterns in a more quantitative way, a new set of measures is developed that focus on both the global extent and local density of agglomeration patterns. Here it is shown for the case of Japan that these measures provide a useful classification of pattern types that reflect a number of theoretical findings in the New Economic Geography.

Suggested Citation

  • 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.
    • Handle: RePEc:kyo:wpaper:794
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP794.pdf
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    References listed on IDEAS

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    1. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    2. 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.
    3. Takatoshi Tabuchi & Jacques-François Thisse, 2006. "Regional Specialization, Urban Hierarchy, And Commuting Costs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1295-1317, November.
    4. 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.
    5. 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.
    6. 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.
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    9. Krugman, Paul, 1993. "On the number and location of cities," European Economic Review, Elsevier, vol. 37(2-3), pages 293-298, April.
    10. 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.
    11. Akamatsu, Takashi & Takayama, Yuki & Ikeda, Kiyohiro, 2012. "Spatial discounting, Fourier, and racetrack economy: A recipe for the analysis of spatial agglomeration models," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1729-1759.
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    More about this item

    Keywords

    Industrial Agglomeration; Cluster Analysis; Spatial Patterns of Agglomerations; New Economic Geography;
    All these keywords.

    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

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