Abstract
In this paper, we examine the existence of agglomeration and co-agglomeration effects on production in a rural city Japanese food industry from 1985 to 2000 using a city-level 2-digit subclassification, panel dataset, agglomeration index (Henderson 2003), and co-agglomeration index (Ellison and Glaeser 1997). The Cobb-Douglas production function based on Nakamura and Eshima (2004) showed that agglomeration and co-agglomeration positively effect scale economies in the rural city Japanese food industry.
JEL Classification: D24, E23, R11
