Abstract ▼ AI-Helper

The spatial agglomeration of the population and resources has been regarded as a main theme of urban and regional economics. Many scholars have done researches in this field since Marshall, and volumes of researches on the cause and the effect of agglomeration has been produced in Korea. Studies whi...

The spatial agglomeration of the population and resources has been regarded as a main theme of urban and regional economics. Many scholars have done researches in this field since Marshall, and volumes of researches on the cause and the effect of agglomeration has been produced in Korea. Studies which are substantially analyzing the effect of agglomeration verify its effect on regional productivity by using variables mostly associated with aggregate data and socio-economic environment of local government. However, we can make more minute analysis if we directly analyze the influence of the effect of agglomeration on individual firm since aggregate data is comprised of product, labor, and capital on individual business level. In addition, using spatial attributes can contribute to a finer analysis since variables which account local attributes inevitably belongs to each local's spatial attributes. Based on this idea, this study analyzes the effect of spatial attributes such as, employment density and population density, on the productivity of manufacturing sector by regression of production function. The result of this study shows that employment density and population density has a positive effect on the manufacturing productivity and so does population density.

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