Determinants of agglomeration for food industries in Japan

Abstract

The aim of this article is to clarify the determinants of agglomeration for food industries in Japan. Characteristics of industries that proxy the presence of domestic and imported agriculture products, processed foods, manufactured goods except for processed foods, the manufacturing labour force and market size related to agglomeration are estimated. The analysis is conducted separately at a whole food industry and industries that are classified by 3-digits of the Japan Standard Industry Classification. Results indicate that domestic agriculture products as materials, and processed foods and manufactured goods as intermediate goods have a positive influence on agglomeration for the whole food industry in Japan, with manufacturing labour force and market size. Focus on agriculture products, processed foods and manufactured products of each industry showed that processed foods positively affect agglomeration in seasoning, bakery and confectionery products, and soft drinks. Both processed foods and manufactured products have a positive effect on agglomeration for tea and coffee. Both processed foods and domestic agriculture products are determinants of agglomeration for seafood products, miscellaneous foods and related products. On the other hand, the determinant of agglomeration for livestock products is only domestic agriculture products.