Determinants of Industrial Coagglomeration and Establishment-level Productivity

Daisuke Fujii, Kentaro Nakajima and Yukiko Saito

No 57, HIT-REFINED Working Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper investigates the relationships between determinants of industrial coagglomeration and establishment-level productivity. For each pair of industries, we first construct degree of coagglomeration and indices for three factors of coagglomeration: inter-firm transactions, knowledge spillover, and labor market pooling. We then examine correlation between these three factors and degree of coagglomeration. Overall, inter-firm transactions and labor market pooling are positively correlated with the degree of coagglomeration whereas knowledge spillover has no significant relationship with coagglomeration. We also find that determinants of coagglomeration are quite different across industries. Further, we examine relationships between these factors and establishment-level productivity. In the results, we find that determinants of coagglomeration are not necessarily positively associated with productivity of establishments.

Keywords: coagglomeration; transaction costs; knowledge spillover; labor pooling (search for similar items in EconPapers)
JEL-codes: R11 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2016-03
New Economics Papers: this item is included in nep-com, nep-eff, nep-geo, nep-ino, nep-tid and nep-ure
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/27821/wp057.pdf

Related works:
Working Paper: Determinants of Industrial Coagglomeration and Establishment-level Productivity (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:remfce:57

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