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Abstract

Vol. 57, No. 3, pp. 224-235 (2006)

“Agglomeration Economies in New Growth Sectors of Japanese Manufacturing Industry”
Akihiro Otsuka (Socio-economic Research Center, Central Research Institute of Electric Power Industry)

This paper examines the effects of industrial agglomeration on productivity growth in new growth sectors. Our analysis employing 4-digit data of Japanese manufacturing industries shows that 1) ceramic, stone and clay products, general machinery, precision instruments and machinery, enjoy the advantage generated by the close location to the other industries, 2) new manufacturing technology sectors, such as industrial robots tend to receive agglomeration effects, although information technology sectors do not, 3) most new growth sectors gain profit from economies of scale at a very local level. These findings reveal that the new growth sectors benefit from agglomeration effects and face to market competition.