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Regional inflation, spatial locations and the Balassa-Samuelson effect: Evidence from Japan

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  • Jun Nagayasu

Abstract

We empirically analyse regional inflation using data from Japan where there is no regulation to impede the free movement of labour, capital, goods and services across regions. In particular, our analysis will focus on the geographical location of regions and the productivity (known as the Balassa-Samuelson (BS)) effect as explanations for the dynamics of regional inflation. Based on a spatial model which is consistent with the theoretical specification of the BS, we have confirmed that, while it is a relatively small country in terms of land area, both spatial location and productivity are important determinants of regional inflation.

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  • Jun Nagayasu, 2017. "Regional inflation, spatial locations and the Balassa-Samuelson effect: Evidence from Japan," Urban Studies, Urban Studies Journal Limited, vol. 54(6), pages 1482-1499, May.
    • Handle: RePEc:sae:urbstu:v:54:y:2017:i:6:p:1482-1499
    DOI: 10.1177/0042098016629915
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    Cited by:

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    2. Koji Murayama & Jun Nagayasu & Lamia Bazzaoui, 2022. "Spatial Dependence, Social Networks, and Economic Structures in Japanese Regional Labor Migration," Sustainability, MDPI, vol. 14(3), pages 1-31, February.
    3. Nagayasu, Jun, 2020. "Economic Activities and Regional Correlation During Economic and Natural Disasters," MPRA Paper 103084, University Library of Munich, Germany.
    4. Harry Aginta, 2022. "Spatiotemporal analysis of regional inflation in an emerging country: The case of Indonesia," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(3), pages 667-688, June.
    5. Harry Aginta, 2021. "Spatial dynamics of consumer price in Indonesia: convergence clubs and conditioning factors," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 427-451, June.

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