The Annals of Regional Science

, Volume 54, Issue 2, pp 401–416 | Cite as

Agglomeration economies in Japanese industries: the Solow residual approach

  • Akihiro Otsuka
  • Mika Goto
Original Paper


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.

JEL Classification

D24 R11 R12 



This work was supported by a Japan Society for the Promotion of Science (JSPS) Grant-in-Aid for Scientific Research (KAKENHI) 24530287.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2015

Authors and Affiliations

  1. 1.Socio-Economic Research CenterCentral Research Institute of Electric Power IndustryTokyoJapan
  2. 2.Graduate School of Decision Science and TechnologyTokyo Institute of TechnologyTokyoJapan

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