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Analysis of Agglomeration Economies in Manufacturing Industries of Seoul Metropolitan Area

Kim, Euijune 1 이호민 2 Park, Seungkyu 3

1서울대학교
2한국토지공사
3연세대학교

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ABSTRACT

The main purpose of this paper is to empirically analyse the economical efficiency of spatial concentration of economic activities and population into the Seoul Metropolitan Area(S.M.A). The translog cost function is used to estimate the differences of regional agglomeration economies of the employer density and geographic population density values and the categories of agglomeration economies are classified into urbanization economy, localization economy and economy of scale.The most part of S.M.A have had agglomeration economies and the northern part of S.M.A have had higher agglomeration economies than the southern part. Urbanization economies and economy of scale were found both in the northern and southern part whereas the localization economy only in the southern part of S.M.A. Finally, the agglomeration economies were decreasing in the more concentrated part, and in the less concentrated part of S.M.A more concentration produce larger agglomeration economies.

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