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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 share has risen after the historic exchange rate appreciation. As is consistent with the interpretation that import penetration undermines regional input-output linkages, our regressions detect the significant decline of industrial concentrations previously established near output absorbers, especially in industries with high import share growths. This paper also finds that local knowledge spillovers and immobile specialized labor affect regional growth. Thus, while regional demand of tradable outputs matters less, regional supply of inputs, especially non-tradable inputs, remains critical for manufacturing locations.

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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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References

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  2. Mano, Yukichi & Otsuka, Keijiro, 2000. "Agglomeration Economies and Geographical Concentration of Industries: A Case Study of Manufacturing Sectors in Postwar Japan," Journal of the Japanese and International Economies, Elsevier, vol. 14(3), pages 189-203, September.
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  8. Elisenda Paluzie Hernandez & Jordi Pons Novell & Daniel Aurelio Tirado Fabregat, 2000. "Regional integration and specialisation patterns in Spain," Working Papers in Economics 62, Universitat de Barcelona. Espai de Recerca en Economia.
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  10. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, vol. 41(3-5), pages 571-579, April.
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  14. Marius Brülhart, 2001. "Evolving geographical concentration of European manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(2), pages 215-243, June.
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Citations

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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. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank.
  3. 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.
  4. Kyoji Fukao & Toshihiro Okubo, 2008. "Why Has the Border Effect in the Japanese Machinery Sectors Declined? The Role of Business Networks in East Asian-Machinery Trade," Hi-Stat Discussion Paper Series d07-238, Institute of Economic Research, Hitotsubashi University.
  5. 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.

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