 Agglomeration economies in Vietnam: A firm-level analysisToshitaka Gokan, Ikuo Kuroiwa and Kentaro Nakajima Journal of Asian Economics, 2019, vol. 62, issue C, 52-64 Abstract: This study examines the effects of agglomeration economies on firm-level productivity in Vietnam. We develop new measures of localization and urbanization economies using the cluster detection technique proposed by Mori and Smith (2014) and estimate the effects of localization and urbanization economies by firm type—state-owned, private, and foreign-owned. Furthermore, we decompose the effects of agglomeration economies into three sources: inter-industry transaction relationships, knowledge spillovers, and labor pooling. We show that localization economies improve firm-level productivity in Vietnam, with firms in clustered areas having higher productivity. However, such economies do not improve the productivity of state-owned enterprises. We also find that urbanization economies improve productivity only for foreign-owned firms, but do not benefit state-owned and private firms. On the other hand, decomposition of agglomeration economies suggests that transactions are effective only for private firms, while knowledge spillovers and labor pooling are effective for foreign-owned firms. Keywords: Agglomeration economies; Economic geography; Productivity; Vietnam (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:62:y:2019:i:c:p:52-64 DOI: 10.1016/j.asieco.2019.03.002 Access Statistics for this article Journal of Asian Economics is currently edited by C. Wiemer More articles in Journal of Asian Economics from Elsevier |
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