IDEAS home Printed from https://ideas.repec.org/a/spr/apjors/v6y2022i1d10.1007_s41685-021-00210-x.html
   My bibliography  Save this article

Impact of changes in the labor force and innovative agro-based food industry clusters on primary and food–beverage industries, and regional economies in Japan’s depopulating society

Author

Listed:
  • Suminori Tokunaga

    (Reitaku University)

  • Mitsuru Okiyama

    (Reitaku University)

Abstract

Demographic changes such as a decline in the labor force population and increase in an elderly population in Japan since 2000 have not been uniform across regions. These population dynamics restrain regional Japanese industries and impede the growth of regional economies. The period from 2005 to 2030 can be divided into two periods according to the degree of depopulation: mild depopulation period (2005–2015) and rapid depopulation period (2015–2030). This demographic change has a significant impact on primary and food–beverage industries. The domestic supply of primary and food–beverage industries under mild depopulation declined from 2000 until 2015. Therefore, in this paper, we evaluate the impacts of the decline in labor force, domestic market, and total-factor productivity (TFP) on primary and food–beverage industries, and regional economies during these periods. As a countermeasure to the rapid decline in population and TFP for 2015–2030, policies for demand-side consumption tax reduction and supply-side innovative agro-based food industry clusters were proposed, and their economic effects empirically analyzed using the four-region computable general equilibrium (4SCGE) model. We found that the long-term sustainable economic development of primary and food–beverage industries, and regional economies under rapid depopulation requires a demand-side consumption tax reduction policy to stimulate short-term domestic demand as well as a supply-side innovative agro-based food industry cluster policy to expand long-term domestic production.

Suggested Citation

  • Suminori Tokunaga & Mitsuru Okiyama, 2022. "Impact of changes in the labor force and innovative agro-based food industry clusters on primary and food–beverage industries, and regional economies in Japan’s depopulating society," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 365-419, February.
    • Handle: RePEc:spr:apjors:v:6:y:2022:i:1:d:10.1007_s41685-021-00210-x
    DOI: 10.1007/s41685-021-00210-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41685-021-00210-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s41685-021-00210-x?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Firms in the European Union," Sciences Po publications info:hdl:2441/10192, Sciences Po.
    2. Fujita,Masahisa & Thisse,Jacques-François, 2013. "Economics of Agglomeration," Cambridge Books, Cambridge University Press, number 9781107001411, January.
    3. Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, Decembrie.
    4. Suminori Tokunaga & Yuko Akune & Maria Ikegawa, 2021. "Market access, domestic and Japanese supplier access, vertical agglomerations and overseas locations of Japanese food multinational firms in East Asia: comparison of the 1985–1999 and 2000–2009 period," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 1023-1051, October.
    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Suminori Tokunaga & Maria Ikegawa, 2019. "Global supply chain, vertical and horizontal agglomerations, and location of final and intermediate goods production sites for Japanese MNFs in East Asia: evidence from the Japanese Electronics and Au," Asia-Pacific Journal of Regional Science, Springer, vol. 3(3), pages 911-953, October.
    7. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    8. repec:hal:spmain:info:hdl:2441/10192 is not listed on IDEAS
    9. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
    10. repec:hal:wpspec:info:hdl:2441/10192 is not listed on IDEAS
    11. Suminori Tokunaga & Masahiro Kageyama & Yuko Akune & Ryohei Nakamura, 2014. "Empirical Analysis Of Agglomeration Economies In The Japanese Assembly-Type Manufacturing Industry For 1985–2000: Using Agglomeration And Coagglomeration Indices," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 26(1), pages 57-79, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yoshiro Higano & Akihiro Otsuka, 2022. "Special Feature on Regional Sustainability: analysis in a spatial and regional context with broad perspectives on the risk of global warming, natural disasters, and emerging issues due to the globaliz," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 239-245, February.

    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. Suminori Tokunaga & Maria Ikegawa, 2019. "Global supply chain, vertical and horizontal agglomerations, and location of final and intermediate goods production sites for Japanese MNFs in East Asia: evidence from the Japanese Electronics and Au," Asia-Pacific Journal of Regional Science, Springer, vol. 3(3), pages 911-953, October.
    2. Suminori Tokunaga & Yuko Akune & Maria Ikegawa, 2021. "Market access, domestic and Japanese supplier access, vertical agglomerations and overseas locations of Japanese food multinational firms in East Asia: comparison of the 1985–1999 and 2000–2009 period," Asia-Pacific Journal of Regional Science, Springer, vol. 5(3), pages 1023-1051, October.
    3. Suminori Tokunaga & Mitsuru Okiyama, 2017. "Impacts of industry clusters with innovation on the regional economy in Japanese depopulating society after the Great East Japan Earthquake," Asia-Pacific Journal of Regional Science, Springer, vol. 1(1), pages 99-131, April.
    4. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
    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. Alfaro, Laura & Chen, Maggie Xiaoyang, 2014. "The global agglomeration of multinational firms," Journal of International Economics, Elsevier, vol. 94(2), pages 263-276.
    7. José M. Gaspar, 2018. "A prospective review on New Economic Geography," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 237-272, September.
    8. Spies, Julia, 2010. "Network and border effects: Where do foreign multinationals locate in Germany?," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 20-32, January.
    9. PHOLO Alain & TENIKUE Michel & NAFARI Baraka, 2017. "Market Potential, Agglomeration Effects and the Location of French Firms in Africa," LISER Working Paper Series 2017-19, Luxembourg Institute of Socio-Economic Research (LISER).
    10. Laura Casi & Laura Resmini, 2014. "Spatial complexity and interactions in the FDI attractiveness of regions," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 51-78, November.
    11. repec:hal:spmain:info:hdl:2441/1kv8mtgl748r0ahh12air9erdc is not listed on IDEAS
    12. Ioannides, Yannis M., 2015. "Neighborhoods to nations via social interactions," Economic Modelling, Elsevier, vol. 48(C), pages 5-15.
    13. Natalia Vechiu & Farid Makhlouf, 2014. "Economic integration and specialization in production in the EU27: does FDI influence countries’ specialization?," Empirical Economics, Springer, vol. 46(2), pages 543-572, March.
    14. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669, Elsevier.
    15. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    16. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    17. repec:hal:spmain:info:hdl:2441/10191 is not listed on IDEAS
    18. Gao, Ting, 2004. "Regional industrial growth: evidence from Chinese industries," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 101-124, January.
    19. Mayer, T. & Mejean, I. & Nefussi, B., 2010. "The location of domestic and foreign production affiliates by French multinational firms," Journal of Urban Economics, Elsevier, vol. 68(2), pages 115-128, September.
    20. Yang, Yong, 2012. "Agglomeration density and tourism development in China: An empirical research based on dynamic panel data model," Tourism Management, Elsevier, vol. 33(6), pages 1347-1359.
    21. Sosa Andrés, Maximiliano & Nunnenkamp, Peter & Busse, Matthias, 2013. "What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-53.
    22. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.

    More about this item

    Keywords

    Japanese food–beverage industry; Innovative agro-based food industry cluster; Depopulating society; Spatial CGE model; Kanto region and other regional areas; Vertical supply linkage;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    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:spr:apjors:v:6:y:2022:i:1:d:10.1007_s41685-021-00210-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.