Sectoral Differences in the Effect of Industrial Agglomeration
This paper derives related-industry from input-output method, and is the first to apply the result into the study of the externality effect of within-industry agglomeration and related-industry co-agglomeration. As a main form of externality, localization economy can be resolved into within-industry agglomeration and related-industry co- agglomeration, this paper used Input-Output method and principle component analysis to identify related-industry. This paper finds the empirical evidence of within-industry agglomeration and related-industry co-agglomeration, within-industry agglomeration is the main source for labor-intensive industries, and related-industry co-agglomeration is the main source for capital-intensive and high-tech industry industries. This paper also finds that productivity will vary in an "inverted U" shape with the increase of within-industry agglomeration and related-industry co-agglomeration degree. These findings are beneficial for Government to make decisions of industry transfer.
Helen Zhang, Gang Shen and David Jin
J. Yang "Sectoral Differences in the Effect of Industrial Agglomeration", Advanced Materials Research, Vols. 225-226, pp. 1192-1195, 2011