Empirical Analysis of Agglomeration Economies in Japanese Assembly-type Manufacturing Industry for 1985-2000: Using a flexible translog production function

Author Name TOKUNAGA Suminori (University of Tsukuba) / KAGEYAMA Masahiro (Joyo Bank) / AKUNE Yuko (Reitaku University) / NAKAMURA Ryohei (Faculty Fellow, RIETI)
Creation Date/NO. December 2012 12-E-082
Research Project Sustainable Regional Development: New industrial clusters and division of functions
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For Japan's assembly-type manufacturing industry which is composed of general machinery, electrical machinery, equipment and suppliers, and transportation equipment for 1985-2000, we estimate flexible translog production function based on Kim (1992) and Tokunaga and Kageyama (2008) using four-digit standard industrial classification (SIC) industry panel data and Ellison and Glaeser's (1997) agglomeration and co-agglomeration indices (with different industry groups) panel data, and obtain theoretically appropriate and significant results without the homotheticity restriction. From these results, we find evidence of positive and weak agglomeration economies on production in Japanese assembly-type manufacturing industry for 1985-2000.

Published: Suminori Tokunaga, Masahiro Kageyama, Yuko Akune, Ryohei Nakamura, 2014. "Empirical Analysisi of Agglomeration Economies in the Japanese Assembly‐type Manufacturing Industry for 1985-2000: using Agglomeration and Coagglomeration Indices," Review of Urban & Regional Development Studies, Vol. 26(1), pp. 57-79.