Preliminary discussions on the urbanization of rural areas in modern Iran

In this translation draft of the first part of the author's recently-published book in Japanese, entitled as "Rural-cities in Contemporary Iran: Revolution, War and the Structural Changes in the Rural Society," we are presenting the preliminary discussions on Iranian middle-sized cities and towns which emerged in these 30 years or so. We start from the explanations of the contents of the above-mentioned book and do the reviewing of the preceding studies, followed by the critical review of the studies on the Iranian revolution in 1979, and the studies on Iran's recent political trends and the tendencies towards the local governance, which was tempered and collapsed with the appearance of President Ahmadīnejād. This consists of the Introduction and the first parts of Chapter 1 of our book, and we are expecting to finish translating the whole contents and to publish it in the near future. We apologize for the shortcomings of this paper, for example some partial lack of correspondence of its bibliography with the main contents, mainly because of the technical reasons.

Agglomeration and firm-level productivity : a Bayesian spatial approach

This paper estimates the impact of industrial agglomeration on firm-level productivity in Chinese manufacturing sectors. To account for spatial autocorrelation across regions, we formulate a hierarchical spatial model at the firm level and develop a Bayesian estimation algorithm. A Bayesian instrumental-variables approach is used to address endogeneity bias of agglomeration. Robust to these potential biases, we find that agglomeration of the same industry (i.e. localization) has a productivity-boosting effect, but agglomeration of urban population (i.e. urbanization) has no such effects. Additionally, the localization effects increase with educational levels of employees and the share of intermediate inputs in gross output. These results may suggest that agglomeration externalities occur through knowledge spillovers and input sharing among firms producing similar manufactures.