LAUSR

Do labor productivity, industrial agglomeration, and urbanization coexist in cluster space? To examine this question, we used multiple methodologies. Density-based cluster mapping is used to create the cluster space, simultaneous equation in each cluster to verify the co-existence of agglomeration, LP, and urbanization and, Kohonen self-organizing maps to insightful analyses of these clusters. This article used 18-year county-based data from 2001 to 2018 and analyzes the cluster space in Hungary. Three things emerge out from this study: first, there are seven clusters in space; second, in all seven cluster agglomeration, LP, and urbanization are significantly co-exist and there is bidirectional causality among them; and third, Hungarian manufacturing regions can be classified into two phases of clusters. The manufacturing industrial structure in Hungary is group-specific where one group is in a declining phase and another is in the reindustrialization phase.