Recent theories of economic geography suggest that firms in the same industry may be drawn to the same locations because proximity generates positive externalities or 'agglomeration effects.' Under this view, chance events and government inducements can have a lasting influence on the...

We study Japanese investments between 1980 and 1992 to assess the effectiveness of state promotion efforts in light of strong agglomeration economies in Japanese investment. Two policy variables are consistently shown to influence the location of investment - foreign trade zones and labor...

This paper investigates why Japanese investors in the United States tend to locate foreign affiliates near concentrations of U.S. and Japanese establishments in their own industry. We hypothesize that the tendency to agglomerate varies according to attributes of industries, and our empirical...