Agglomeration with the Declining Marshallian Agglomeration Economies:An inquiry into the postwar development of the Nada sake brewing district in Japan

Yuya Aikawa (), Tomoko Hashino and Keijiro Otsuka ()
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Yuya Aikawa: Graduate School of Economics, Kobe University

No 2308, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This study explores the changing roles of agglomeration economies in cluster development based on the historical experience of sake brewing districts in postwar Japan. Nada, the most advanced brewing district, had grown through the horizontal division of labor and development of skilled labor market when production was labor-intensive in the 1950s. The adoption of capital-intensive mechanized brewing, induced by wage growth in the 1960s and 1970s, replaced skilled labor. In recent periods, Nada’s breweries attempted quality improvement and establishing a regional brand by collectively internalizing the external benefits of information spillovers, which are beyond the scope of the Marshallian arguments.

Pages: 50 pages
Date: 2023-04
New Economics Papers: this item is included in nep-des, nep-his and nep-ure
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