Identification of spatial agglomerations in the German food processing industry.

We identify spatial agglomerations in the German food industry, using the Cluster Index by Sternberg and Litzenberger. Previous studies have analysed this industry utilizing aggregated data with the result of a lack of agglomerations. Given its heterogeneous character, the present study analyses subsectors of the German food industry at a disaggregated spatial and sectoral level. The results show spatial agglomerations in particular for the subsectors processing and preserving of meat, fish, fruit, wine, milk, mineral water as well as for breweries. This indicates that those subsectors are characterized by stronger cluster self-enforcing processes likely in combination with a favourable proximity to natural resources. [ABSTRACT FROM AUTHOR]