Agglomeration economies and geographical concentration of industries: A case study of manufacturing sectors in postwar Japan

There have been secular changes in the location of manufacturing industries away from large metropolitan areas in Japan. Using prefectural data in fiv e major manufacturing sectors for three periods (1960-1973, 1973-1980, and 1980-1995), this study attempts to identify the factors affecting the chang ing patterns of industrial concentration, We found through regression analy sis of employment growth that while the "pull" to cities by agglomeration e conomies has. been weak, the "push" by congestion of cities and increasing competition with service sectors has had pervasive impacts on the geographi cal dispersion of industries. (C) 2000 Academic Press. Journal of Economic Literature Classification Numbers: L60, R11.