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An Industrial Agglomeration Approach To Central Place And City Size Regularities

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  • Tomoya Mori
  • Tony E. Smith
Abstract
An empirical regularity designated as the Number-Average Size (NAS) Rule was first identified for the case of Japan by Mori, Nishikimi and Smith [13], and has since been extended to the US by Hsu [6]. This rule asserts a negative log-linear relation between the number and average population size of cities where a given industry is present, i.e., of industry-choice cities. Hence one of its key features is to focus on the presence or absence of industries in each city, rather than the percentage distribution of industries across cities. But despite the strong empirical regularity of this rule, there still remains the statistical question of whether such location patterns could simply have occurred by chance. In this paper an alternative approach to industry-choice cities is proposed. This approach utilizes the statistical procedure developed in Mori and Smith [15] to identify spatially explicit patterns of agglomeration for each industry. In this context, the desired industry-choice cities are taken to be those (economic) cities that constitute at least part of a significant spatial agglomeration for the industry. These cluster-based choice cities are then used to reformulate both the NAS Rule and the closely related Hierarchy Principle of Christaller [2]. The key empirical result of the paper is to show that the NAS Rule not only continues to hold under this new definition, but in some respects is even stronger. The Hierarchy Principle is also shown to hold under this new definition. Finally, the present notion of cluster-based choice cities is also used to develop tests of both the locational diversity of industries and the industrial diversity of cities in Japan.
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Suggested Citation

  • Tomoya Mori & Tony E. Smith, 2011. "An Industrial Agglomeration Approach To Central Place And City Size Regularities," Journal of Regional Science, Wiley Blackwell, vol. 51(4), pages 694-731, October.
    • Handle: RePEc:bla:jregsc:v:51:y:2011:i:4:p:694-731
    DOI: j.1467-9787.2011.00715.x
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    References listed on IDEAS

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    1. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    2. Tomoya Mori & Tony E. Smith, 2009. "A Reconsideration of the NAS Rule from an Industrial Agglomeration Perspective," KIER Working Papers 669, Kyoto University, Institute of Economic Research.
    3. Takatoshi Tabuchi & Jacques-François Thisse, 2006. "Regional Specialization, Urban Hierarchy, And Commuting Costs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1295-1317, November.
    4. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2005. "A Divergence Statistic for Industrial Localization," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 635-651, November.
    5. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    6. Tomoya Mori & Tony E. Smith, 2014. "A probabilistic modeling approach to the detection of industrial agglomerations," Journal of Economic Geography, Oxford University Press, vol. 14(3), pages 547-588.
    7. Tomoya Mori & Koji Nishikimi & Tony E. Smith, 2008. "The Number‐Average Size Rule: A New Empirical Relationship Between Industrial Location And City Size," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 165-211, February.
    8. Julian Besag & James Newell, 1991. "The Detection of Clusters in Rare Diseases," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 154(1), pages 143-155, January.
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    Cited by:

    1. Tomoya Mori, 2017. "Evolution of the Size and Industrial Structure of Cities in Japan between 1980 and 2010: Constant Churning and Persistent Regularity," Asian Development Review, MIT Press, vol. 34(2), pages 86-113, September.
    2. John B. Parr, 2017. "Central Place Theory: An Evaluation," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 29(3), pages 151-164, November.
    3. Mori, Tomoya & Smith, Tony E., 2015. "On the spatial scale of industrial agglomerations," Journal of Urban Economics, Elsevier, vol. 89(C), pages 1-20.
    4. Tomoya Mori & Jens Wrona, 2021. "Centrality Bias in Inter-city Trade," KIER Working Papers 1056, Kyoto University, Institute of Economic Research.
    5. Fayuan Wang & Rong Wang & Zhili He, 2022. "Exploring the Impact of “Double Cycle” and Industrial Upgrading on Sustainable High-Quality Economic Development: Application of Spatial and Mediation Models," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    6. HAEDO, Christian & MOUCHART , Michel & ,, 2013. "Specialized agglomerations with areal data: model and detection," LIDAM Discussion Papers CORE 2013060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Marcus Berliant & Tomoya Mori, 2017. "Beyond urban form: How Masahisa Fujita shapes us," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(1), pages 5-28, March.
    8. Tomoya Mori & Tony E. Smith, 2011. "Analysis of Industrial Agglomeration Patterns: An Application to Manufacturing Industries in Japan," KIER Working Papers 794, Kyoto University, Institute of Economic Research.
    9. MORI Tomoya, 2017. "Evolution of Sizes and Industrial Structure of Cities in Japan from 1980 to 2010: Constant churning and persistent regularity," Discussion papers 17013, Research Institute of Economy, Trade and Industry (RIETI).
    10. Tomoya Mori, 2017. "Central Place Analysis," KIER Working Papers 959, Kyoto University, Institute of Economic Research.
    11. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 405-431, April.
    12. Zhang, Lin & He, Xiaoxia & Jia, Zhenli, 2023. "Industrial agglomeration, public services and city size: Evidence from 286 cities in China," Land Use Policy, Elsevier, vol. 131(C).
    13. Hsu, Wen-Tai & Holmes, Thomas J. & Morgan, Frank, 2014. "Optimal city hierarchy: A dynamic programming approach to central place theory," Journal of Economic Theory, Elsevier, vol. 154(C), pages 245-273.
    14. Tomoya Mori & Jens Wrona, 2018. "Inter-city Trade," KIER Working Papers 995, Kyoto University, Institute of Economic Research.
    15. Ikeda, Kiyohrio & Onda, Mikihisa & Takayama, Yuki, 2017. "Bifurcation theory of a square lattice economy: Racetrack economy analogy in an economic geography model," MPRA Paper 78120, University Library of Munich, Germany.
    16. Haosu Zhao & Bart Julien Dewancker & Feng Hua & Junping He & Weijun Gao, 2020. "Restrictions of Historical Tissues on Urban Growth, Self-Sustaining Agglomeration in Walled Cities of Chinese Origin," Sustainability, MDPI, vol. 12(14), pages 1-29, July.

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