Impact of Industrial Agglomeration on Productivity: Evidence from Iran’s Food Industry

  • Nastaran Najkar
  • Mohammad Reza KohansalEmail author
  • Mohammad Ghorbani


This paper aims to examine the effect of agglomeration on firm level productivity in Iran’s food manufacturing by employing a firm level dataset during 1986–2015 among firms for four districts. The empirical results show that agglomeration in north districts are key factors in productivity growth. In this work, we apply a spatial Bayes model that uses hierarchical techniques during the three terms. The productivity clustering map is able to capture such patterns as the high productivity area that appears in the south, north districts of Iran. This paper evaluates the effect of agglomeration on firm productivity in Iran’s food industries at district level. We find that regional market potential is the strong predictor of productivity; moreover, industrial agglomeration has a productivity-augmenting impact.


Agglomeration productivity spatial Bayes hierarchical Iran 


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Copyright information

© Science Press, Northeast Institute of Geography and Agroecology, CAS and Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  • Nastaran Najkar
    • 1
  • Mohammad Reza Kohansal
    • 2
    Email author
  • Mohammad Ghorbani
    • 2
  1. 1.Department of Agricultural EconomicsInternational Campus of Ferdowsi University of MashhadMashhadIran
  2. 2.Department of Agricultural EconomicsFerdowsi University of MashhadMashhadIran

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