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[This chapter proposes a new approach to measure agglomeration economies in Japan. Specifically, this study employs the Solow residual to confirm whether agglomeration economies exist in both manufacturing and non-manufacturing industries. This study also shows that social overhead capital has a positive effect on agglomeration economies. Currently, such economies are robust only in large metropolitan areas; however, they are present throughout Japan because of the disproportionate allocation of social overhead capital within the country.]
Published: Sep 19, 2017
Keywords: Agglomeration economies; Solow residual; Social overhead capital
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