IDEAS home Printed from https://ideas.repec.org/a/bla/rgscpp/v13y2021i3p1051-1067.html
   My bibliography  Save this article

A new approach to inter‐regional network externalities in Japan

Author

Listed:
  • Akihiro Otsuka

Abstract

This study evaluates the regional agglomeration and the inter‐regional network economies in Japan based on cost‐based Solow residuals, overcoming the issues associated with the conventional analytical approaches. Furthermore, this study performs a simulation analysis of the economic impacts of the Linear Chuo Shinkansen (magnetic levitation train) to investigate the role of high‐quality transportation infrastructure in regional sustainability. The results reveal that the improvement of inter‐regional networks increases regional productivity. Furthermore, the results reveal that the economic benefits of inter‐regional networks extend beyond railroad lines. These results suggest that inter‐regional networks via high‐quality transportation infrastructure enhance regional economic performance. Este estudio evalúa la aglomeración regional y las economías de red interregionales en el Japón, basadas en los residuos de Solow en función de los costos, una vez superados los problemas asociados a los enfoques analíticos convencionales. Además, este estudio realiza un análisis de simulación de los impactos económicos de la línea de tren de alta velocidad por levitación magnética Chūō Shinkansen para investigar el papel de la infraestructura de transporte de alta calidad en la sostenibilidad regional. Los resultados revelan que la mejora de las redes interregionales aumenta la productividad regional. Además, los resultados revelan que los beneficios económicos de las redes interregionales alcanzan más allá de las líneas de ferrocarril. Estos resultados sugieren que las redes interregionales de infraestructura de transporte de alta calidad mejoran el rendimiento económico regional. 本稿では、因習的な分析方法による問題点を克服し、コストベースのソロー残差に基づいて日本における地域集積と地域間ネットワークの経済の評価を行う。さらに、リニア中央新幹線 (磁気浮上式鉄道)による経済的影響のシミュレーション分析を行い、地域の持続可能性における高品質の交通輸送インフラの役割を検討した。結果から、地域間ネットワークの改善が地域の生産性を上昇させることが明らかになった。さらに、地域間ネットワークの経済的利益が鉄道沿線を越えて広がることも明らかになった。以上の結果から、高品質の交通輸送インフラを介した地域間ネットワークが地域経済のパフォーマンスを高めることが示唆される。

Suggested Citation

  • Akihiro Otsuka, 2021. "A new approach to inter‐regional network externalities in Japan," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1051-1067, June.
    • Handle: RePEc:bla:rgscpp:v:13:y:2021:i:3:p:1051-1067
    DOI: 10.1111/rsp3.12291
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rsp3.12291
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rsp3.12291?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
    2. Ricardo J. Caballero & Takeo Hoshi & Anil K. Kashyap, 2008. "Zombie Lending and Depressed Restructuring in Japan," American Economic Review, American Economic Association, vol. 98(5), pages 1943-1977, December.
    3. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    4. Roberta Capello, 2000. "The City Network Paradigm: Measuring Urban Network Externalities," Urban Studies, Urban Studies Journal Limited, vol. 37(11), pages 1925-1945, October.
    5. Laird, James J. & Venables, Anthony J., 2017. "Transport investment and economic performance: A framework for project appraisal," Transport Policy, Elsevier, vol. 56(C), pages 1-11.
    6. Rafael Boix & Joan Trullén, 2007. "Knowledge, networks of cities and growth in regional urban systems," Papers in Regional Science, Wiley Blackwell, vol. 86(4), pages 551-574, November.
    7. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    8. Gilles Duranton & Diego Puga, 2020. "The Economics of Urban Density," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 3-26, Summer.
    9. Akihiro Otsuka & Mika Goto, 2016. "Total factor productivity and the convergence of disparities in Japanese regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 419-432, March.
    10. J. Vernon Henderson, 2001. "Marshall's Scale Economies," Working Papers 2001-46, Brown University, Department of Economics.
    11. Peter Diamond (ed.), 1990. "Growth / Productivity / Unemployment," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262041103, December.
    12. John S. Chipman, 1970. "External Economies of Scale and Competitive Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 347-385.
    13. Graham, Daniel J. & Gibbons, Stephen, 2019. "Quantifying Wider Economic Impacts of agglomeration for transport appraisal: Existing evidence and future directions," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    14. Gilles Duranton & J. V. Henderson & William C. Strange (ed.), 2015. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 5, number 5.
    15. Evert Meijers & Martijn Burger & Evert J. Meijers & Martijn J. Burger & Marloes M. Hoogerbrugge, 2016. "Borrowing size in networks of cities: City size, network connectivity and metropolitan functions in Europe," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 181-198, March.
    16. Daniel J Graham, 2009. "Identifying urbanisation and localisation externalities in manufacturing and service industries," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 63-84, March.
    17. Roberta Capello & Roberto Camagni, 2000. "Beyond Optimal City Size: An Evaluation of Alternative Urban Growth Patterns," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1479-1496, August.
    18. Evert Meijers & Martijn Burger & Roberto Camagni & Roberta Capello & Andrea Caragliu, 2016. "Static vs. dynamic agglomeration economies. Spatial context and structural evolution behind urban growth," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 133-158, March.
    19. Roberto Camagni & Roberta Capello & Andrea Caragliu, 2015. "The Rise of Second-Rank Cities: What Role for Agglomeration Economies?," European Planning Studies, Taylor & Francis Journals, vol. 23(6), pages 1069-1089, June.
    20. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
    21. Akihiro Otsuka, 2018. "Dynamics of agglomeration, accessibility, and total factor productivity: evidence from Japanese regions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(7), pages 611-627, October.
    22. Kanemoto, Yoshitsugu & Ohkawara, Toru & Suzuki, Tsutomu, 1996. "Agglomeration Economies and a Test for Optimal City Sizes in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 10(4), pages 379-398, December.
    23. Evert Meijers & Martijn Burger & Martijn J. Burger & Evert J. Meijers, 2016. "Agglomerations and the rise of urban network externalities," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 5-15, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Akihiro Otsuka, 2017. "Regional determinants of total factor productivity in Japan: stochastic frontier analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 579-596, May.
    2. Graham, Daniel J. & Gibbons, Stephen, 2019. "Quantifying Wider Economic Impacts of agglomeration for transport appraisal: Existing evidence and future directions," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    3. Evert Meijers & Martijn Burger & Martijn J. Burger & Evert J. Meijers, 2016. "Agglomerations and the rise of urban network externalities," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 5-15, March.
    4. Ahlfeldt, Gabriel M. & Pietrostefani, Elisabetta, 2019. "The economic effects of density: A synthesis," Journal of Urban Economics, Elsevier, vol. 111(C), pages 93-107.
    5. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    6. Akihiro Otsuka & Mika Goto, 2015. "Agglomeration economies in Japanese industries: the Solow residual approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 401-416, March.
    7. Luigi Buzzacchi & Antonio De Marco & Marcello Pagnini, 2021. "Agglomeration and the Italian North-South divide," Questioni di Economia e Finanza (Occasional Papers) 637, Bank of Italy, Economic Research and International Relations Area.
    8. Gilles Duranton & Diego Puga, 2020. "The Economics of Urban Density," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 3-26, Summer.
    9. repec:hal:spmain:info:hdl:2441/1kv8mtgl748r0ahh12air9erdc is not listed on IDEAS
    10. Hongming Zhang & Tieshan Sun & Yuanxi Li, 2022. "Network capital and economic growth of major urban agglomeration regions in China," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 60-75, November.
    11. Rizov, Marian & Oskam, Arie & Walsh, Paul, 2012. "Is there a limit to agglomeration? Evidence from productivity of Dutch firms," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 595-606.
    12. Kono, Tatsuhito & Nakajima, Kentaro & Ozane, Kanta, 2023. "Quantitative Impact Analysis of the Centralization of Firms in the Tokyo Metropolitan Area Considering Firm-to-Firm Trade Networks," MPRA Paper 117594, University Library of Munich, Germany.
    13. Wenfang Fu & Chuanjian Luo & Modan Yan, 2023. "Does Urban Agglomeration Promote the Development of Cities? Evidence from the Urban Network Externalities," Sustainability, MDPI, vol. 15(12), pages 1-20, June.
    14. Eva Coll-Martínez, 2019. "Creativity and the city: testing the attenuation of agglomeration economies in Barcelona," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(3), pages 365-395, September.
    15. Xiaoxia Gong & Fanglei Zhong, 2021. "The Impact of Borrowing Size on the Economic Development of Small and Medium-Sized Cities in China," Land, MDPI, vol. 10(2), pages 1-18, January.
    16. Andrew Perumal, 2017. "42 Years of Urban Growth and Industry Composition," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(2), pages 133-147, June.
    17. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    18. Beltrán Tapia, Francisco J. & Díez-Minguela, Alfonso & Martinez-Galarraga, Julio, 2018. "Tracing the Evolution of Agglomeration Economies: Spain, 1860–1991," The Journal of Economic History, Cambridge University Press, vol. 78(1), pages 81-117, March.
    19. Roberto Camagni & Roberta Capello, 2015. "Second-Rank City Dynamics: Theoretical Interpretations Behind Their Growth Potentials," European Planning Studies, Taylor & Francis Journals, vol. 23(6), pages 1041-1053, June.
    20. Ming He & Yang Chen & Ron Schramm, 2018. "Technological spillovers in space and firm productivity: Evidence from China’s electric apparatus industry," Urban Studies, Urban Studies Journal Limited, vol. 55(11), pages 2522-2541, August.
    21. Wan Li & Bindong Sun & Tinglin Zhang, 2019. "Spatial structure and labour productivity: Evidence from prefectures in China," Urban Studies, Urban Studies Journal Limited, vol. 56(8), pages 1516-1532, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rgscpp:v:13:y:2021:i:3:p:1051-1067. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1757-7802 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.