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Changing economic geography and vertical linkages in Japan

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  • Tomiura, Eiichi

Abstract

In Japan, the manufacturing has become geographically dispersed in the 1990s, when the import has drastically increased after the historic exchange rate appreciation. This suggests the possibility that regional input-output linkages are undermined by import penetration. The regression results indicate the decline of industrial concentrations, particularly those previously established near large output absorbers. This paper also finds that local knowledge spillovers and availability of immobile specialized labor affect regional growth. These imply that the geography matters for industrial locations rather through the supply of inputs, especially non-tradable inputs, than through the demand for tradable outputs.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 17 (2003)
Issue (Month): 4 (December)
Pages: 561-581

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Handle: RePEc:eee:jjieco:v:17:y:2003:i:4:p:561-581

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Web page: http://www.elsevier.com/locate/inca/622903

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Cited by:
  1. Kyoji Fukao & Toshihiro Okubo, 2004. "Why Has the Border Effect in the Japanese Market Declined?: The Role of Business Networks in East Asia," Hi-Stat Discussion Paper Series d03-24, Institute of Economic Research, Hitotsubashi University.
  2. Kyoji Fukao & Toshihiro Okubo, 2011. "Why Has the Border Effect in the Japanese Machinery Sectors Declined? The Role of Business Networks in East Asian Machinery Trade," Global COE Hi-Stat Discussion Paper Series gd11-197, Institute of Economic Research, Hitotsubashi University.
  3. Mendoza, Jorge Eduardo, 2003. "Efectos de la aglomeración y los encadenamientos industriales en el patrón de crecimiento manufacturero en México
    [Manufacturing specialization and urban aglommeration in the largest cities of M
    ," MPRA Paper 2854, University Library of Munich, Germany, revised 2003.
  4. Dilip Saikia, 2011. "Does Economic Integration Affect Spatial Concentration of Industries? Theory and a Case Study for India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 89-114, December.
  5. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank.

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