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Industrial relocation policy, productivity and heterogeneous plants: Evidence from Japan

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  • Toshihiro Okubo

    (Faculty of Economics, Keio University)

  • Eiichi Tomiura

    (Department of Economics, Yokohama National University)

Abstract

Do regional policies for promoting periphery development attract high- or low-productivity firms? Though whether policies improve the core-periphery productivity gap hinges on this question, no consensus is found in theoretical models. This paper uses plant-level data covering all regions in Japan during the period of active relocation policies. Our estimation results from plant-level regressions and propensity-score matching show that the average productivity of plants is significantly low in regions targeted by relocation policy programs. By comparing productivity distributions across plants before and after the start of each policy program, we find that low-productivity plants are attracted to targeted regions.

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File URL: http://ies.keio.ac.jp/old_project/old/gcoe-econbus/pdf/dp/DP2011-011.pdf
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Bibliographic Info

Paper provided by Keio/Kyoto Joint Global COE Program in its series Keio/Kyoto Joint Global COE Discussion Paper Series with number 2011-011.

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Length: 31 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:kei:dpaper:2011-011

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Cited by:
  1. Lampón, Jesús F. & Lago-Peñas, Santiago & Cabanelas, Pablo, 2013. "Can the periphery achieve core? The case of the automobile components industry in Spain," MPRA Paper 52879, University Library of Munich, Germany.

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