A New Perspective on Agglomeration Economies in Japan

This book describes various methods of analysis for ascertaining the effects of agglomeration economies, which are important for formulating regional economic policies. Specifically, it describes new analytical approaches using productivity and productive efficiency analyses as methods for understanding agglomeration economies. Additionally, the book provides application results for Japanese regions and proposes desirable regional policies. According to the new analytical methods advocated in this book, agglomeration economies are larger in major metropolitan areas than in local regions, and in the manufacturing sector than in the non-manufacturing sector. These results are consistent with general knowledge. Moreover, the majority of productivity growth pertaining to regional economies is explainable by improvements to accessibility. Improving accessibility for regions reduces transportation costs between them and strengthens agglomeration economies, which, in turn, enable the sustainable development of regional economies. Therefore, this book highlights the need not only to reinforce existing agglomeration areas, but also to form a network between these agglomerations and to strengthen it, so as to realize regional economic growth despite a decreasing population.

Proposes a new analytical approach and empirical method of agglomeration economies using the Solow residual Presents a new empirical model that assumes imperfect competition among companies Sets forth an analytical approach that utilizes stochastic frontier and data envelopment analyses

Autorentext

Akihiro Otsuka is an associate professor at Yokohama City University's Association of International Arts and Science, Japan. His field of expertise is empirical research on regional science and energy economics. His has received the Martin Beckmann RSAI Annual Award and the RSPP Annual Paper Award.

Inhalt

Preface.- 1. Introduction and Summary.- 2. Empirical Knowledge of Agglomeration Economies.- 3. A Traditional Approach to Agglomeration Economies.- 4. A New Approach to Agglomeration Economies.- 5. Dynamic Externalities: Theory and Empirical Analysis.- 6. A New Approach to Dynamic Externalities (I).- 7. A New Approach to Dynamic Externalities (II).- 8. Market Access, Agglomeration Economies, and Productive Efficiency (I).- 9. Market Access, Agglomeration Economies, and Productive Efficiency (II).- 10. Market Access, Agglomeration Economies, and New Firm Formation.