DETERMINANTS OF AGGLOMERATION IN KOREAN MANUFACTURING INDUSTRIES

2018 ◽  
pp. 1-27
Author(s):  
EUI-CHUL CHUNG ◽  
BUN SONG LEE ◽  
CHANHO CHO
Keyword(s):  
Labor Market ◽  
Knowledge Spillovers ◽  
Urban Economics ◽  
Manufacturing Industries ◽  
Geographical Concentration ◽  
Innovation Activities ◽  
Labor Market Pooling ◽  
Established Firms ◽  
Marshallian Externalities ◽  
Input Sharing

Despite accumulated findings on the effects of agglomeration on productivity of manufacturing industries in Korea, little is known about the determinants of agglomeration. Employing an approach similar to Rosenthal and Strange (2001) [Rosenthal, S and W Strange (2001). The determinants of agglomeration. Journal of Urban Economics, 50(2), 191–229.], but using a different agglomeration index, this study examines whether the three microfoundations of agglomeration economies are important to the geographical concentration of Korean manufacturing industries. While estimation results generally confirm that labor market pooling, input sharing and knowledge spillovers contribute to agglomeration, we found some differences with the previous literature. First, non-manufactured inputs are more influential on agglomeration than manufactured inputs. Secondly, aggregate innovation activities, rather than their share of shipments, are a better measure of knowledge spillovers to explain agglomeration. Thirdly, agglomeration of newly established firms is also influenced by the Marshallian externalities with labor market pooling having a stronger and consistent effect. These results are robust to instrumental variables estimation to control for endogeneity related to knowledge spillovers and labor market pooling.

scholarly journals The Effect of Marshallian and Jacobian Knowledge Spillovers on Jobs in the Solar, Wind and Energy Efficiency Sector

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4269
Author(s):  
Luigi Aldieri ◽  
Jonas Grafström ◽  
Concetto Paolo Vinci
Keyword(s):  
Energy Efficiency ◽  
Solar Wind ◽  
Production Efficiency ◽  
Knowledge Spillovers ◽  
Job Creation ◽  
Green Energy ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Tobit Regression ◽  
Marshallian Externalities

The purpose of this paper is to establish if Marshallian and Jacobian knowledge spillovers affect job creation in the green energy sector. Whether these two effects exist is important for the number of jobs created in related fields and jobs pushed away in other sectors. In the analysis, the production efficiency, in terms of jobs and job spillovers, from inventions in solar, wind and energy efficiency, is explored through data envelopment analysis (DEA), based on the Malmquist productivity index, and tobit regression. A panel dataset of American and European firms over the period of 2002–2017 is used. The contribution to the literature is to show the role of the spillovers from the same technology sector (Marshallian externalities), and of the spillovers from more diversified activity (Jacobian externalities). Since previous empirical evidence concerning the innovation effects on the production efficiency is yet weak, the paper attempts to bridge this gap. The empirical findings suggest negative Marshallian externalities, while Jacobian externalities have no statistical impact on the job creation process. The findings are of strategic importance for governments who are developing industrial strategies for renewable energy.

scholarly journals Labor Market Pooling

2002 ◽  
Vol 02 (121) ◽  
pp. 1
Author(s):  
Guido De Blasio ◽  
Sabrina Di Addario ◽  
◽  
Keyword(s):  
Labor Market ◽  
Labor Market Pooling

Protection, Trade, and Wages: Evidence from U.S. Manufacturing

ILR Review ◽  
1994 ◽  
Vol 47 (4) ◽  
pp. 574-593 ◽  
Author(s):  
Noel Gaston ◽  
Daniel Trefler
Keyword(s):  
International Trade ◽  
Labor Market ◽  
Trade Policy ◽  
Manufacturing Industries ◽  
Trade Protection ◽  
Trade Barriers ◽  
Data Set ◽  
Wage Effect ◽  
Nontariff Barriers ◽  
Antidumping Duties

This paper investigates the effects of international trade policy on wages in U.S. manufacturing industries in 1983. The data set combines micro labor market data with comprehensive data on tariffs and nontariff trade barriers such as quotas and antidumping duties. The authors find that workers in unprotected, export-oriented industries had higher wages than workers with similar observable characteristics in protected, import-competing industries; more specifically, exports had a positive wage effect and imports had a smaller negative wage effect. Other findings are that nontariff barriers had no significant effect on wages, and tariffs appear to have had a large negative wage effect, even after the authors control for the trade protection received by low-wage industries.

scholarly journals Minimum Wage and Youth Employment The Case Study of Iran's Manufacturing Industries

2011 ◽  
Vol 1 (2) ◽  
pp. 38-43
Author(s):  
Ahmad Jafari Samimi
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Supply And Demand ◽  
Manufacturing Industries ◽  
Youth Employment ◽  
Average Wage ◽  
Labor Supply And Demand ◽  
Positive Effect ◽  
Aggregation Level

The purpose of this paper is to examine the effect of minimum wage on the youth employment using panel technique in Iran’s manufacturing industries at the 4-digit aggregation level of ISIC classification, during 2001-2006. There is the controversy surrounding minimum wage because the effects of the introduction and increase of minimum wage may differ greatly depending on the labor market structure. In order to capture the effects which various un-observed labor supply and demand factors may have on the youth employment, The Kaitz Index (as the ratio of the minimum wage to the average wage) has been used in our analysis. The obtained results provide the small but positive effect of minimum wage on youth employment.

scholarly journals The Elasticity-Based Approach to Enterprise Innovation

2016 ◽  
Vol 49 (1) ◽  
pp. 58-78 ◽  
Author(s):  
Adam Karbowski
Keyword(s):  
Patent Protection ◽  
Knowledge Spillovers ◽  
Formal Model ◽  
Formal Analysis ◽  
Consumer Preference ◽  
Model Framework ◽  
Firm Innovation ◽  
Product Demand ◽  
Free Rider Problem ◽  
Innovation Activities

Abstract The goal of this paper is to present a formal model of firm innovation that simultaneously analyzes innovation factors characteristic to the Schumpeterian strand of industrial organization literature and the know-how strand. Corporate R&D intensity serves here as an input measure of firm innovation. R&D intensity can be defined as a ratio of firm’s R&D spending to the firm’s sales (total revenues). On the basis of formal analysis it is found that R&D intensity is fully determined by three complementary factors, i.e. a firm’s technological competence (supply-side factor), consumer preference for quality and price of a product (demand-side factor), as well as a moderator factor associated with the knowledge spillovers, which occur between competing firms in the industry. Since the above factors are expressed in terms of elasticities, the presented model is called an elasticity-based model of firm innovation. Further, within the model framework, it is shown how horizontal R&D cooperation alleviates the free-rider problem that can discourage a firm’s innovation activities. It is next postulated that horizontal R&D cooperation can be effectively treated as a complementary tool (to such traditional solutions as patent protection and public research subsidies) for solving the problem of negative externalities in an industry with pervasive knowledge spillovers.

Industry innovation spending and openness to collaboration as levers for firm performance

2019 ◽  
Vol 22 (4) ◽  
pp. 617-638 ◽  
Author(s):  
Luiz Fernando de Paris Caldas ◽  
Fabio de Oliveira Paula ◽  
T. Diana L. van Aduard de Macedo-Soares
Keyword(s):  
Firm Performance ◽  
Knowledge Spillovers ◽  
Moderating Effect ◽  
Firm Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industry Collaboration ◽  
And Performance ◽  
Italian Manufacturing Firms ◽  
The Relationship

Purpose The purpose of this paper is to analyze to what extent spending on innovation activities and collaboration at the industry level affects the relationship between firm innovation and performance. Design/methodology/approach A conceptual model was proposed and empirically tested using multiple linear regression. The data were obtained from the Community Innovation Survey 2012, composing a sample of 890 Italian manufacturing firms. Findings The results provided full support for the positive moderating effect of intra-industry innovation spending and partial support for the positive moderating effect of intra-industry collaboration, both regarding the relationship between firm innovation spending and performance. Knowledge spillovers derived from intra-industry innovation spending and intra-industry collaboration affect firm performance. While this finding corroborates other studies that have found that the intra-industry R&D spending influences firms’ innovation and performance, it also contributes to improve the understanding about the complementarity of internal innovation activities and knowledge spillovers. Originality/value This study contributes to theory by filling a gap concerning the complementarity of internal innovation activities and the effect of knowledge spillovers to improve firm performance. Our findings suggested that intra-industry openness to collaboration and innovation spending, as proxies of knowledge spillovers, plays an important role in complementing firm level innovative efforts, even in the case of firms that spend less on innovation and have a lower degree of collaboration. This is especially relevant for small and medium enterprises, which can take advantage of access to the necessary information to overcome their internal resource constraints for R&D and innovation. The originality of these findings adds value in terms of furthering the understanding of this phenomenon.

scholarly journals Knowledge spillovers, innovation activities, and competitiveness of industries in EU member and candidate countries

2013 ◽  
Vol 58 (198) ◽  
pp. 7-34 ◽  
Author(s):  
Iraj Hashi ◽  
Nebojsa Stojcic
Keyword(s):  
Market Share ◽  
Knowledge Spillovers ◽  
Empirical Work ◽  
Innovation Process ◽  
Community Innovation Survey ◽  
Eu Member States ◽  
Innovation Activities ◽  
Quality Upgrading ◽  
And Performance ◽  
The Impact

The impact of innovation activities on the performance and competitiveness of firms, industries, and nations has been a matter of considerable interest over the past few decades. The existing empirical work has widened our knowledge of the complexity of the innovation process and its impact on the ability of firms to compete. This study investigates how knowledge spillovers generated through firms? innovation activities affect the ability of their industries to compete in terms of quality. The data from the Community Innovation Survey 2006 for several EU member and candidate countries that have recently become available are combined with other EU-wide datasets to create an industry database containing information on innovation activities and performance at industry level. A simultaneous equations framework is used to examine the interdependencies between knowledge spillovers, innovation activities, quality upgrading, and the market share of industries from the selected countries in the single European market. The results of the investigation provide support for the relationship between innovation, quality upgrading, and market share of industries, and point to several types of spillover which are relevant for the competitiveness of national industries in EU member states.

scholarly journals Tales of the city: what do agglomeration cases tell us about agglomeration in general?

2020 ◽  
Vol 20 (5) ◽  
pp. 1117-1143
Author(s):  
Giulia Faggio ◽  
Olmo Silva ◽  
William C Strange
Keyword(s):  
Knowledge Spillovers ◽  
The Novel ◽  
Cross Sectional ◽  
Worker Education ◽  
Manufacturing Sectors ◽  
Single Industry ◽  
Individual Industry ◽  
The Individual ◽  
Input Sharing ◽  
The City

Abstract This article considers the heterogeneous microfoundations of agglomeration economies. It studies the co-location of industries to look for evidence of labour pooling, input sharing and knowledge spillovers. The novel contribution of the article is that it estimates single-industry models using a common empirical framework that exploits the cross-sectional variation in how one industry co-locates with the other industries in the economy. This unified approach yields evidence on the relative importance of the Marshallian microfoundations at the single-industry level, allowing for like-for-like cross-industry comparisons on the determinants of agglomeration. Using UK data, we estimate such microfoundation models for 97 manufacturing sectors, including the classic agglomeration cases of automobiles, computers, cutlery and textiles. These four cases—as with all of the individual industry models we estimate—clearly show the importance of the Marshallian forces. However, they also highlight how the importance of these forces varies across industries—implying that extrapolation from cases should be viewed with caution. The article concludes with an investigation of the pattern of heterogeneity. The degree of an industry’s clustering (localisation), entrepreneurship, incumbent firm size and worker education are shown to contribute to the pattern of heterogeneous microfoundations.

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