Applicability of Marshall’s Agglomeration Theory to Indus-trial Clustering in the Japanese Manufacturing Sector: An Exploratory Factor Analysis Approach
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This study explores the results of a location survey of new Japanese manufacturing plants from 1997 to 2004 and reports an industrial cluster in Japan. More specifically, this study identifies an industrial cluster and specifies its advantages based on an exploratory factor analysis (EFA), which explores the spatial position of the cluster through spatial variation of factor scores. The major finding of this study is that there exists an industrial cluster factor containing most of the location advantages of a Marshallian industrial cluster, especially the secondary reason of the location choice. In addition, through the spatial analysis of the factor scores, this study identifies two prefectures—Nagano and Niigata—where Marshallian advantages are most effective in attracting plant locations.