Bayesian Estimation of Spatial Externalities Using Regional Production Function: The Case of China and Japan
Abstract
This paper used regional panel data for Chinese provinces from 1979 to 2003, and for Japanese prefectures from 1955 to 1998, to estimate the spatial externalities (or spatial multiplier effects) using a production function and Bayesian methodology, and to investigate the long-run behavior of the spatial externalities of each country. According to the estimation results, China's spatial externalities increased its domestic production significantly after 1994, which tended to increase until 2003. Before 1993, however, its spatial externalities were not significant. Japan's spatial externalities showed fluctuating values throughout the sample period. Furthermore, the movement of the spatial externalities was correlated with Japan's business conditions: the externalities showed a high value in the economic boom, and a low value in the economic depression. This could mean that spatial externalities depend mainly on business conditions.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17902.Length:
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:pra:mprapa:17902
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Related research
Keywords: Spatial Externalities; Bayesian Estimation; Production Function;Other versions of this item:
- Yoshihiro Hashiguchi, 2010. "Bayesian estimation of spatial externalities using regional production function: the case of China and Japan," Economics Bulletin, AccessEcon, vol. 30(1), pages 751-764.
- E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
- N95 - Economic History - - Regional and Urban History - - - Asia including Middle East
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-24 (All new papers)
- NEP-GEO-2009-10-24 (Economic Geography)
- NEP-MAC-2009-10-24 (Macroeconomics)
- NEP-TRA-2009-10-24 (Transition Economics)
- NEP-URE-2009-10-24 (Urban & Real Estate Economics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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