||The Localization of Interfirm Transaction Relationships and Industry Agglomeration
Nakajima, Kentaro ,
Saito, Yukiko UmenoUesugi, Iichiro
2016-03 , Institute of Economic Research, Hitotsubashi University
Using a unique and massive dataset on firms' suppliers and customers, we examine the localization of transaction relationships to find the following. First, based on a counterfactual that controls for the location of firms and their potential partners, transaction relationships in about 90 to 95% of the three-digit manufacturing industries are localized within 40km. Second, based on a counterfactual that controls for the average distance of transaction relationships in the entire manufacturing sector, in about 40% of industries transaction relationships are localized. Third, the extent of industry agglomeration and the extent of the localization of transaction relationships are positively correlated.
基盤研究(S) = Grants-in-Aid for Scientific Research (S)