Agglomeration economies in Japanese industries: the Solow residual approach

Akihiro Otsuka () and Mika Goto ()

The Annals of Regional Science, 2015, vol. 54, issue 2, 416 pages

Abstract: This paper proposes a new approach to measuring agglomeration economies in Japan. Under the proposed approach, we used the Solow residual to measure agglomeration economies and confirmed that agglomeration economies exist in both manufacturing and non-manufacturing industries. Furthermore, this paper shows that social overhead capital has a positive effect on agglomeration economies. Currently, agglomeration economies are robust only in metropolitan areas; however, they are present throughout Japan because of the disproportionate allocation of social overhead capital within the nation. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: D24; R11; R12 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/s00168-015-0659-z

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