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Agglomeration economies, mechanisation and changes in product quality: The post‐war development of the sake brewery clusters in Japan, 1980–2020

Year: 2026

Type: article

Abstract: Agglomeration economies contribute to firm performance; however, their changing roles are rarely analysed. This study explores how technology choices and the changing nature of agglomeration economies affected firm performance in the Japanese sake (rice wine) brewing industry from 1980 to 2020. Using plant‐level data, we find that agglomeration benefits arose from sales of sake from small unknown firms to large established firms when production was labour‐intensive. These inter‐firm transactions, however, diminished as scale economies emerged with mechanisation. As the demand for high‐quality sake increased, collective internalisation of information spillover benefits appears to become a major source of agglomeration economies.

Source: Asia‐Pacific Economic History Review

DOI: 10.1111/aehr.70040

Authors: Yuya Aikawa, Nobuaki Hamaguchi, Tomoko Hashino, Keijiro Otsuka

Institutions: Doshisha University, Research Institute of Economy, Trade and Industry, Research Institute for Economics & Business Administration, Kobe University, Kobe University, Asian Development Bank Institute

Language: English

Topic: Agglomeration and Urban Systems

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: bronze

Funders: Ministry of Economy, Trade and Industry, Research Institute of Economy, Trade and Industry