In the rcrevious literature, the existing urban svstem is a result of Iocational behavuor of office firms. In reality, however, the urban system is also a determinant of firms' location. That is, there are interrelationships between the formation of the urban system and the location of office firms. In this paper, location of branch offices, which plays an important role for spatial behavior of firms, is examined what feature is observed under the existing hierarchical [Christa11er-type] urban system. This is analyzed by mainly comparison between industries. In preparation for the analysis, a 'city rank' is set up in the section II. This rank is determined by three factors; city population, retail market area population, and the number of establishments of [branches of] major administrative organization, so that the rank is independent of location of firms. Analyzed are manufacturing firms listed on the first section of Tokyo Stock Exchange, and headquartered in Tokyo. These firms are classified into 24 industries.In the section III, overall tendency of location of branches is overviewed. Branches are agglomerated upon high-ranked large cities such as Osaka, Nagoya,Sapporo, Fukuoka, Hiroshima, and Sendai, which are named the regional core cities.From a nationwide viewpoint, the city rank and the number of branches are strongly correlated each other. Further, 'city order' is set up according to Chiristaller's market principle. The lower the city is ordered, the less the average number of branches is. Especially, the average number in the second order amounts to more than twiceas large as that in the third order.In the section TV, the location of branch firms in each industry is compared. The average number of branches is, in general, large in comsurner goods industries, and small in intermediate and capital goods industries. It also correlates significantly with degree of agglomeration of branches to high-ranked cities, which is the index of spatial concentration of branches. While there are many branches dispersed throughout Japan in consumer goods industries [e.g., medicine], there are few branches concentrated in large cities in intermediate and capital goods industries [e.g., textile]. These differences come from by behavior in each industry's markets,In consumer goods industries, firms have to collect information on customers'demand and tastes, and contact with their retail and wholesale stores. In intermediate and capital goods industries, however, information is standardized by contractin advance, and there are few customers.
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