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Article
Publication date: 28 January 2014

Li Li and Guo-hui Hu

At present, financial agglomeration tendency in domestic and foreign countries is increasingly evident. Therefore, from a comparative perspective, this paper aims to…

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Abstract

Purpose

At present, financial agglomeration tendency in domestic and foreign countries is increasingly evident. Therefore, from a comparative perspective, this paper aims to assess and predict the financial agglomeration degree in central five cities.

Design/methodology/approach

According to the diversity of evaluating indexes and the uncertainty of financial agglomeration, this paper constructs a set of indexes of evaluating the financial agglomeration degree, comprehensively evaluates the financial agglomeration degree of the five cities – Wuhan, Changsha, Zhengzhou, Nanchang and Hefei – in China's middle region from 2001 to 2010 by using the multiple dimension grey fuzzy decision-making model, and predicts their development tendency by using the GM (1, 1, β) model.

Findings

The results show that the multiple dimension grey fuzzy decision-making pattern cannot only be used to determine the weights of evaluating indexes, but also get the fuzzy partition and ranking order of the financial agglomeration in central five cities. The grey prediction results can objectively reflect the development tendency of the financial agglomeration in central five cities.

Practical implications

From the results, it is necessary for any competitive city to clarify their relative strengths and weaknesses in order for the accurate location and scientific development, and it also provides a reference for the government decision-making.

Originality/value

The paper succeeds in using the multiple dimension grey fuzzy decision-making model to measure the financial agglomeration degree of the five central cities and the grey prediction model to predict future trends.

Details

Grey Systems: Theory and Application, vol. 4 no. 1
Type: Research Article
ISSN: 2043-9377

Keywords

Open Access
Article
Publication date: 14 October 2022

Boxu Yang, Xielin Liu and Wen Liu

The purpose of this paper is to reveal the paradox between diversification and specialization from a dynamic perspective. More precisely, this paper will analyze the…

Abstract

Purpose

The purpose of this paper is to reveal the paradox between diversification and specialization from a dynamic perspective. More precisely, this paper will analyze the impact of diversification and specialization as well as their interaction on regional innovation in different development stages.

Design/methodology/approach

Based on the principles of new economic geography and innovation geography, data from 30 provinces from 2001 to 2017 was used to explore the relationship. Least squares regressions with fix effect were used to examine the hypotheses.

Findings

The results show that both diversification and specialization have a significantly and positive impact on regional innovation. The interaction of diversification and specialization also significantly and positively impacts regional innovation. The effect of industrial agglomeration is heterogeneity under different development stages.

Practical implications

This paper verifies the positive role of diversification and specialization and their interaction in promoting regional innovation. The impact of industrial agglomeration on innovation is dynamic and changes with the regional development process. Emerging economies should make appropriate industrial agglomeration strategies according to their development stages.

Originality/value

This paper introduces diversification, specialization and their interaction into the research framework at the same time to analyze their impact on innovation performance which deepened the research of industrial agglomeration. Taking China as an example, this paper also examines the impact of industrial agglomeration on regional innovation in different development stages that expands the dynamic perspective of industrial agglomeration.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2071-1395

Keywords

Book part
Publication date: 7 October 2020

Amela Dizdarevic, Heiner Evanschitzky and Christof Backhaus

  • Retail agglomerations are predestined to capitalise on the combination of the strengths of traditional retailing and digital service innovations.
  • Digital touchpoints can…

Abstract

Learning Outcomes

  • Retail agglomerations are predestined to capitalise on the combination of the strengths of traditional retailing and digital service innovations.

  • Digital touchpoints can enhance the visitor experience throughout the whole customer journey, that is not only on-site but also before reaching as well as after having left the agglomeration.

  • Digital service innovations can provide additional value to visitors of a retail agglomeration through four elements of the digital marketing mix: Information, orientation, communication and atmosphere.

  • Technologies like augmented reality (AR) or virtual reality (VR) can create unique and memorable customer experiences, ensuring that retailers and service providers as well as the retail agglomeration as a whole continue to thrive.

  • Key success factors for the implementation of digital services in the context of retail agglomerations include participative innovation processes, cooperation and the communication of clear benefits to stakeholders.

Retail agglomerations are predestined to capitalise on the combination of the strengths of traditional retailing and digital service innovations.

Digital touchpoints can enhance the visitor experience throughout the whole customer journey, that is not only on-site but also before reaching as well as after having left the agglomeration.

Digital service innovations can provide additional value to visitors of a retail agglomeration through four elements of the digital marketing mix: Information, orientation, communication and atmosphere.

Technologies like augmented reality (AR) or virtual reality (VR) can create unique and memorable customer experiences, ensuring that retailers and service providers as well as the retail agglomeration as a whole continue to thrive.

Key success factors for the implementation of digital services in the context of retail agglomerations include participative innovation processes, cooperation and the communication of clear benefits to stakeholders.

Book part
Publication date: 15 June 2012

Randall G. Holcombe

One aspect of agglomeration economies is economies of scale. When automobile production centered in Detroit in the early part of the twentieth century, this allowed more…

Abstract

One aspect of agglomeration economies is economies of scale. When automobile production centered in Detroit in the early part of the twentieth century, this allowed more efficient production methods, which lowered the per-unit cost of output. Arrow (2000) emphasizes the tension between increasing returns to scale and equilibrium models, and as Young (1928) noted, increasing returns to scale is at the foundation of economic progress. Kaldor (1972), building on Young's insights, noted that static neoclassical economic models did not do a good job of depicting the economic progress that results from increasing returns to scale in production. This insight goes at least as far back as Adam Smith (1776), however, who noted the increased productivity that comes with an increased division of labor. Smith's example of the pin factory, where individuals specializing in one small part of a larger manufacturing operation increase productivity by, perhaps, hundreds of times, shows the benefits of agglomeration economies. The division of labor is limited by the extent of the market, Smith argued, so enlarging the extent of the market allows for a greater division of labor, which increases productivity and generates prosperity. By concentrating automobile production in Detroit rather than having automobiles locally built, the extent of the market is increased from one locality to an entire nation, and in some cases an entire world. The resulting agglomeration economies increase productivity and produce prosperity.

Details

The Spatial Market Process
Type: Book
ISBN: 978-1-78190-006-2

Article
Publication date: 20 July 2022

Hongman Liu, Shibin Wen and Zhuang Wang

Agricultural carbon productivity considers the dual goals of “agricultural economic growth” and “carbon emission reduction”. Improving agricultural carbon productivity is…

Abstract

Purpose

Agricultural carbon productivity considers the dual goals of “agricultural economic growth” and “carbon emission reduction”. Improving agricultural carbon productivity is a requirement for promoting green and low-carbon development of agriculture. Agricultural production agglomeration is widespread worldwide, but the relationship between agricultural production agglomeration and agricultural carbon productivity is inconclusive. This paper aims to study the impact of agricultural production agglomeration on agricultural carbon productivity, which is conducive to a better understanding of the relationships among agglomeration, agricultural economic development and carbon emission, better planning of agricultural layout to build a modern agricultural industrial system and achieve the goal of carbon peaking and carbon neutrality.

Design/methodology/approach

Based on China's provincial data from 1991 to 2019, this paper uses non-radial directional distance function (NDDF) and Metafrontier Malmquist–Luenberger (MML) productivity index to measure total factor agricultural carbon productivity. Subsequently, using a panel two-way fixed effect model to study the effect and mechanism of agricultural production agglomeration on agricultural carbon productivity, and the two-stage least squares method (IV-2SLS) is used to solve endogeneity. Finally, this paper formulates a moderating effect model from the perspective of the efficiency of agricultural material capital inputs.

Findings

The empirical results identify that Chinese provincial agricultural carbon productivity has an overall growth trend and agricultural technological progress is the major source of growth. There is an inverted U-shaped relationship between agricultural production agglomeration and agricultural carbon productivity. The input efficiency of agricultural film, machine and water resources have moderating effects on the inverted U-shaped relationship. Agricultural production agglomeration also promotes agricultural carbon productivity by inhibiting agricultural carbon emissions in addition to affecting agricultural input factors and its internal mechanisms are agricultural green technology progress and rural human capital improvement.

Originality/value

This paper innovatively adopts the NDDF–MML method to measure the total factor agricultural carbon productivity more scientifically and accurately and solves the problems of ignoring group heterogeneity and the shortcomings of traditional productivity measurement in previous studies. This paper also explains the inverted U-shaped relationship between agricultural production agglomeration and agricultural carbon productivity theoretically and empirically. Furthermore, from the perspective of agricultural material capital input efficiency, this paper discusses the moderating effect of input efficiency of fertilizers, pesticides, agricultural film, agricultural machines and water resources on agricultural production agglomeration affecting agricultural carbon productivity and answers the mechanism of carbon emission reduction of agricultural production agglomeration.

Book part
Publication date: 12 September 2003

Fredrick Flyer and J.Myles Shaver

The influence of agglomeration externalities on a firm’s profits depends on the efficiency benefits it derives from collocating and on the contributions it makes to its…

Abstract

The influence of agglomeration externalities on a firm’s profits depends on the efficiency benefits it derives from collocating and on the contributions it makes to its competitors production processes. We examine the economics of firm location choice with a duopoly model that allows for asymmetric contributions by firms to production externalities. In the model, the magnitude of a firm’s contributions to industry agglomeration externalities is determined by its R&D levels and by how closely it locates to the other firm. Through numerical simulations, the effects of firm heterogeneity on industry geographical organization are evaluated. Specifically, the relationships between industry agglomeration strength, R&D investment, location choice timing and Nash equilibria industry structures are explored. The findings from this exercise indicate that geographic collocation tends to occur in industries with symmetry in firm R&D spending and where high R&D firms are the initial entrants. Moreover, we find that under some industry conditions, strengthened agglomeration economies encourage firms to locate more distant from each other rather than collocate. Finally, our simulations also show that firms’ profits tend to increase yet total welfare decreases as agglomeration economies strengthen.

Details

Geography and Strategy
Type: Book
ISBN: 978-0-76231-034-0

Article
Publication date: 31 May 2022

Nana Yang, Qiming Liu, Furong Qian and Xinglong Wang

Because of the rapid progress of global value chains (GVCs), it is worthwhile to study their impact on innovation. This study aims to explore the impact of GVC position of…

Abstract

Purpose

Because of the rapid progress of global value chains (GVCs), it is worthwhile to study their impact on innovation. This study aims to explore the impact of GVC position of high-tech industries in the developing-country context of China on innovation performance; it also aims to explore the moderating effects of industrial agglomeration (specialization agglomeration and diversification agglomeration) on the relationship between GVC position and innovation performance.

Design/methodology/approach

The study is based on data gathered on Chinese high-tech industries in 30 provinces from the 2005–2015 period. The econometric analysis relies on merged data from the China Premium Database and the Trade in Value Added 2018 Database.

Findings

The regression results show that GVC position of China’s high-tech industries significantly affects their innovation performance, and both specialization agglomeration and diversification agglomeration significantly enhance the positive relationship between GVC position and innovation performance of China’s high-tech industries. After dividing the country into coastal and inland regions, new findings appear.

Originality/value

This study highlights the importance of GVC position and its effect on innovation performance of China’s high-tech industries. It contributes to the literature on the relationship between GVCs and innovation by elaborating on the moderating effects of industrial agglomeration on this relationship.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 30 December 2020

Sheng Xu, Qingde Yue and Binbin Lu

The implementation of the innovation-driven development strategy is of practical significance for improving the quality and efficiency of economic growth and accelerating…

Abstract

Purpose

The implementation of the innovation-driven development strategy is of practical significance for improving the quality and efficiency of economic growth and accelerating the transformation of economic development mode. The purpose of this paper is to study the impact of innovation-driven strategies on marine industry agglomeration and industrial transformation.

Design/methodology/approach

In traditional grey correlation analysis, when the positive and negative areas cancel each other out during the integration process, the calculation result of the correlation degree is often inconsistent with the qualitative analysis. For this reason, from the perspective of curve similarity, this paper constructs two response curves through the relative change area of the two curves and the relative area change ratio of similar degree, thus constructing an improved grey relational model.

Findings

The authors find that the innovation investment has a better correlation with marine industrial agglomeration. It also found that Guangdong Province has the highest degree of correlation between innovation indicators and marine industrial agglomeration. Much beyond the authors’ expectation, in the areas where marine industrial agglomeration is high, the synergistic effect is not obvious by using the location entropy method.

Originality/value

The improved grey correlation analysis method can effectively overcome the phenomenon that the positive and negative areas cancel each other in the integration process of the original algorithm, and it can also effectively measure the negative correlation between variables. This paper explores the impact of innovation drive on the agglomeration of marine industries, which is of great significance to the sustainable development of marine economy.

Details

Grey Systems: Theory and Application, vol. 12 no. 1
Type: Research Article
ISSN: 2043-9377

Keywords

Open Access
Article
Publication date: 28 August 2019

Andres Dominguez

This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not…

Abstract

Purpose

This paper aims to estimate the effect of agglomeration on the probability of being an informal firm in Cali, Colombia. Informal firms produce legal goods but do not comply with official regulations. This issue is relevant because, similar to other developing countries, the informal sector in Colombia employs more than 50 per cent of the workforce. The results of this study demonstrate that one standard deviation increase in agglomeration reduces by 52 per cent the probability of being informal. Results are consistent with the idea that informal firms benefit less from agglomeration because of legal restrictions that block the relationship with formal firms.

Design/methodology/approach

The objective of the present paper is to estimate the effect of agglomeration on the probability that a firm – given a location – chooses to be informal. The authors deal with endogeneity issues by using soil information related to earthquake risk, which reduces the height of buildings and therefore increases the cost of agglomeration. The analysis focuses on Cali, Colombia, where the informal sector employs 60 per cent of the workforce. The registration of economic activities is used as a criterion to identify informal firms, in such a way that the percentage of informal firms is 42 per cent.

Findings

The authors find that the effect of agglomeration is strongly negative. The probability of being informal diminishes by 52 per cent when agglomeration increases by one standard deviation. Results in this paper shed light on how formal firms tend to be localized in high-density commercial and industrial areas, while informal firms are localized in low-density and peripheral areas where the land for production is cheaper and where they can avoid the control of authorities.

Originality/value

Theory argues that spatial production externalities and commuting costs are among the main forces that shape the city’s internal structure. Externalities include effects that increase firms’ production, and therefore workers’ income, when the size of the local economy grows. The authors now have strong evidence that firms’ productivity is positively related with the volume of nearby employment. Most of the empirical findings concern firms in the formal sector and, accordingly, the literature says little about the effect of agglomeration on informal firms’ location. However, this effect is crucial for developing countries where informal work is the main option for less-educated workers facing unemployment.

Details

Applied Economic Analysis, vol. 27 no. 80
Type: Research Article
ISSN:

Keywords

Article
Publication date: 21 August 2017

Fernando Robles

The purpose of this paper is to explore the location decision of multinationals across major cities in Latin America. Based on agglomeration economics and institutional…

Abstract

Purpose

The purpose of this paper is to explore the location decision of multinationals across major cities in Latin America. Based on agglomeration economics and institutional theory, the paper explores whether institutional quality of a city can temper the attraction of agglomeration factors.

Design/method/approach

The paper analyzes the geographic dispersion of three global fast-food franchise networks in 45 Latin American cities. The explanatory variables are horizontal aggregation of other multinationals and the institutional quality of a city. The direct and indirect impacts of horizontal agglomeration are explored through negative binomial regression with controls for city population and economic power [gross domestic product (GDP)].

Findings

The key finding is that location choice of fast-food networks is driven principally by market conditions and to a lesser extent by horizontal agglomeration. The institutional quality of a city has a positive influence on the agglomeration of fast-food networks. A city with strong institutional quality makes this relation stronger.

Research limitations

Other multinational and national fast-food franchises are not included in the paper. Future studies should include a greater number of global and local fast-food franchisers.

Practical implications

The positive reinforcements of agglomeration and strong institution are important for the investment location decision of fast-food multinationals. The institutional quality of the city should be an important consideration in the location decision as it expands regionally and within a country. Smaller cities may not offer the agglomeration advantages of the large metropolitan areas, but their good institutional quality may reduce the business costs for multinationals.

Social implications

Large cities in Latin America tend to reap the benefits of agglomeration. As a result, smaller secondary cities struggle to be relevant in generating economic activity and attracting private investments. One strategy to achieve relevance is to build strong and transparent institutions and a solid business environment.

Originality/value

The inclusion of institutional quality at the city level as moderation of the agglomeration factors influencing the location decision of a multinational is original. This paper contributes to our understanding of the importance of regional cities in attracting the investment of multinational firms.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 15 no. 3
Type: Research Article
ISSN: 1536-5433

Keywords

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