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An Empirical Analysis of Japanese Industrial Agglomeration and Factors of Supply Chain Internationalization in East Asia: A case of Japanese food, electronics, and automobile firms (Japanese)

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  • TOKUNAGA Suminori
  • AKUNE Yuko
  • IKEGAWA Maria
  • OKIYAMA Mitsuru

Abstract

In the first part of this paper, we found positive but weak agglomeration economies resulting from agglomeration and coagglomeration in Japan's manufacturing industry during 1995-2010 using panel data of two-digit and four-digit Standard Industrial Classification of Census of Manufactures and Ellison and Glaeser's (1997) agglomeration index with the same industry and coagglomeration index with different industry groups. On the other hand, in the latter part of this paper, based on the new economic geography (NEG) model, we examined location decision, particularly market potential which appropriate way to take into account the spatial distribution of demand in location choice, supplier access, and agglomeration effects. Especially, we used a Krugman's type market potential using the data of bilateral trade from 1995-2009 in East Asia. After calculating this Krugman market potential and supplier access data, we conducted the logit estimation of country choice of Japanese food, electronics, and automobile firms in 11 East Asia countries including China (mainland), Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam, and analyzed the determinants of the location choice for Japanese electronics firms. From the estimated results, we found wage, infra, Krugman market potential as market demand and supplier access as market supply, and vertical agglomerations such as Japanese final goods and intermediate goods affiliates agglomeration which show agglomeration economies have affected Japanese industry investment in East Asia.

Suggested Citation

  • TOKUNAGA Suminori & AKUNE Yuko & IKEGAWA Maria & OKIYAMA Mitsuru, 2015. "An Empirical Analysis of Japanese Industrial Agglomeration and Factors of Supply Chain Internationalization in East Asia: A case of Japanese food, electronics, and automobile firms (Japanese)," Policy Discussion Papers (Japanese) 15021, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:rpdpjp:15021
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    Cited by:

    1. Chenggang Wang & Tiansen Liu & Jinliang Wang & Dongrong Li & Duo Wen & Polina Ziomkovskaya & Yang Zhao, 2022. "Cross-Border E-Commerce Trade and Industrial Clusters: Evidence from China," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    2. Maria Ikegawa & Suminori Tokunaga, 2018. "Location choice for Japanese frozen food industry in East Asia using domestic market access with the penetration rate of refrigerators," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 209-227, July.
    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.

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