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Changing economic geography and vertical linkages in Japan

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  • Eiichi Tomiura

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

In Japan, the manufacturing has become geographically dispersed in the 1990s, when the import has drastically increased after the historic exchange rate appreciation. This suggests the possibility that regional input-output linkages are undermined by import penetration. The regression results indicate the decline of industrial concentrations, particularly those previously established near large output absorbers. This paper also finds that local knowledge spillovers and availability of immobile specialized labor affect regional growth. These imply that the geography matters for industrial locations rather through the supply of inputs, especially non-tradable inputs, than through the demand for tradable outputs.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp133.pdf
File Function: Revised version, 2003
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 133.

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Length: 31 pages
Date of creation: Nov 2002
Date of revision: Jan 2003
Handle: RePEc:kob:dpaper:133

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  1. 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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  8. Andrew B. Bernard & J. Bradford Jensen, 2000. "Understanding Increasing and Decreasing Wage Inequality," NBER Chapters, in: The Impact of International Trade on Wages, pages 227-268 National Bureau of Economic Research, Inc.
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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. Jurgen Essletzbichler & Kazuo Kadokawa, 2010. "The Evolution of Regional Labour Productivities in Japanese Manufacturing, 1968-2004," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1189-1205.
  5. Kyoji Fukao & Toshihiro Okubo, 2004. "Why Has the Border Effect in the Japanese Market Declined? The Role of Business Networks in East Asia," Discussion papers 04016, Research Institute of Economy, Trade and Industry (RIETI).
  6. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank.

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