A theoretical and empirical analysis of network structure on forming agglomeration

2015 Fiscal Year Final Research Report

• Project/Area Number: 24730216
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Applied economics
• Research Institution: Tohoku University (2015); Nagoya City University (2012-2014)
• Principal Investigator: Itoh Ryo 東北大学, 情報科学研究科, 准教授 (30516000)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Keywords: 企業間取引ネットワーク / 集積 / 租税競争 / 海外直接投資

Outline of Final Research Achievements

This study examines how structure of inter-firm network influences location and agglomeration of firms. Using location choice game of firms embedded in transaction network, we show a theoretical result that firms with higher Katz-Bonacich centrality agglomerate in higher probability. We also show an empirical evidence supporting this theoretical insight from the data of inter-firm transaction and foreign direct investment of more than 100,000 firms in Japanese manufacturing sector. Further, we also investigate international tax competition for attracting firm in transaction network, and obtain a theoretical result that reginal governments will offer lower tax to firms with higher centrality.

Free Research Field

都市・地域経済学