【企画セッション】 第２報告（福井紳也） 要旨
The agglomerations of Knowledge-Intensive Business Services andHeadquarters
Shinya Fukui (Osaka Research Center for Industry and the Economy)
1． 背景と目的
In the last few decades, the business service sector in developed economies including Japan has
enormously expanded (Ministry of Economy, Trade and Industry 2002). Business service sector isimportant for Japanese economic performance (Ministry of Economy, Trade and Industry 2017).
We focus on the Knowledge-Intensive Business Service (KIBS) sector in Japan. We observe large
agglomerations of KIBS in large cities such as Tokyo and Osaka. The main customers for KIBS is
thought to be headquarters (HQs). We take “home market effect” (HME), which is firstly presented inKrugman (1980) and Helpman and Krugman (1985), as a cause for agglomeration in KIBS and verify
the HME in KIBS. The industry produces more than share of consumers in that country or city, so thatthe industry will become exporter. This is the HME. There are no studies which focus on the HME ofKIBS, to the best of our knowledge.
We will also explore whether the agglomeration force of HQs is due to the agglomeration of KIBSor not. If the city shows strong agglomeration of KIBS, then HQs, main demander for KIBS, is likely
to agglomerate.
We list the hypotheses in this paper as follows;
1. Agglomeration of Knowledge-Intensive Business Service (KIBS) sector in larger cities occurs dueto the HME.
2.Tthe agglomeration force of HQs is due to the agglomeration of KIBS.
２．分析方法To test the hypotheses, we use econometric method based on the theory of new
economic geography.
To see a cause for agglomeration in KIBS, we use the equation below, which is proposed by
Davis and Weinstein (1996, 1999, 2003). Equation below is derived from the theory of HME.
𝑦𝑦𝑟𝑟𝑘𝑘 = 𝛼𝛼 + 𝛽𝛽1 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝐸𝐸𝑟𝑟𝑘𝑘 + 𝛽𝛽2 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝑀𝑀𝑟𝑟𝑘𝑘 + 𝜀𝜀𝑟𝑟𝑘𝑘 , (1)where 𝑦𝑦𝑟𝑟𝑘𝑘 is the production (sales) of each KIBS 𝑘𝑘 in the region 𝑟𝑟, 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝐸𝐸𝑟𝑟𝑘𝑘 =𝑦𝑦𝑅𝑅𝑘𝑘

𝑦𝑦𝑅𝑅𝐷𝐷 𝑘𝑘𝐷𝐷 𝑘𝑘

𝑦𝑦𝑟𝑟 , and 𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝐼𝑀𝑀𝑟𝑟𝑘𝑘 = � 𝑟𝑟 − 𝑅𝑅 � 𝑦𝑦𝑟𝑟 , 𝑦𝑦𝑅𝑅𝑘𝑘 = ∑𝑟𝑟 𝑦𝑦𝑟𝑟𝑘𝑘 , 𝑦𝑦𝑅𝑅 = ∑𝑘𝑘 𝑦𝑦𝑅𝑅𝑘𝑘 , 𝑦𝑦𝑟𝑟 = ∑𝑘𝑘 𝑦𝑦𝑟𝑟𝑘𝑘 , 𝐷𝐷 is demand and𝐷𝐷𝑟𝑟

𝐷𝐷𝑅𝑅𝐷𝐷𝑟𝑟𝑘𝑘 is the demand of each KIBS in the region 𝑟𝑟, 𝐷𝐷𝑟𝑟 = ∑𝑘𝑘 𝐷𝐷𝑟𝑟𝑘𝑘 , 𝐷𝐷𝑅𝑅𝑘𝑘 = ∑𝑟𝑟 𝐷𝐷𝑟𝑟𝑘𝑘 , and 𝐷𝐷𝑅𝑅 = ∑𝑘𝑘 𝐷𝐷𝑅𝑅𝑘𝑘 .

From the theory, if 𝛽𝛽2 > 1, then HME exists. We prepare panel data set and estimation isconducted with within estimator using instrumental variables.

To verify whether the agglomeration of HQs is due to KIBS or not, building on Duranton andPuga (2005), we use relatively simple reduced form. We utilize more elaborate method Spatial
Generalized Moment method (Kelejian and Prucha (1999). Kapoor et al. (2007)) to test the causality.
３．結果
As a result, specially, “Scientific research” and “Professional services” show clear HME withsignificant value. Additionally, we could find that the agglomeration force of HQs is due to theagglomeration of professional services.
４．考察
We have two policy implications from our analysis. Driving force of Japanese economy is thedevelopment of core cities such as Tokyo and Osaka, and their neighboring cities. And in thesecities, KIBSs are strongly agglomerated and have HME in some sectors. Thus, the Japanese
economic performance is highly dependent on the KIBS. Especially, “Scientific research” and“Professional services,” are key sectors. Secondly, the sustained growth of “Professional services”
sector is important for the activity of HQs and for the large cities’ economy.
＜参考文献＞
Duranton, G., and D., Puga (2005) “From sectoral to functional urban specialization,” Journal ofUrban Economics 57(2): 343-370.
Kapoora, M., H. H. Kelejianb, and I. R. Pruchab. (2007) “Panel data models with spatiallycorrelated error components.” Journal of Econometrics 140(1): 97-130.
Kelejian, H.H. and Prucha, I.R. (1999) “A Generalized Moments Estimator for the Autoregressive
Parameter in a Spatial Model.” International Economic Review 40(2): 509–533.
Krugman, P.R. (1980) “Scale economies, product differentiation, and the pattern oftrade.” American Economic Review 70(5): 950-959.
Ministry of Economy, Trade and Industry. (2002) “White paper on international
economy and trade.”
Ministry of Economy, Trade and Industry. (2017) “White paper on international
economy and trade.”