Theories of New Economic Geography and Geographical Concentration of Manufacturing Industries in Japan
AbstractThis paper investigates the changing geographical pattern of manufacturing industries in Japan in the 1990s and explores factors of their geographical concentration. We start with an estimation of the geographical concentration of manufacturing industries using the coefficient of localization based on manufacturing employment and establishment data at the prefecture level. We then conduct a regression analysis to test some hypotheses of geographical concentration of manufacturing industries, which were derived from new theories of trade and economic geography that have been advanced by Fujita, Krugman, and Venables (1999). In the regression analysis, we consider the following three factors of geographical concentration: scale economies, transportation costs, and inter-industry linkages. We follow basically the approach used by Amiti (1998, 1999), which investigated the effects of scale economies and inter-industry linkages on the geographical concentration of manufacturing industries for EU countries using manufacturing employment and output data from EUROSTAT and UNIDO. As opposed to Amiti, we also consider transportation costs as a possible factor of geographical concentration. Furthermore, our analysis is based on regional data rather than country data. As a measure of plant-level scale economies, we use the ratio of total employment to the total number of establishments in each industry, while as a measure of the intensity of transportation costs, we use the ratio of intermediate transportation inputs to total inputs. To measure plant-level scale economies, we employ manufacturing data from the Statistics of Industry. On the other hand, to measure the intensity of transportation costs and inter-industry linkages, we use the national input-output tables. We expect that scale economies and inter-industry linkages have positive effects, while transportation costs have a negative effect, on the geographical concentration of manufacturing industries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p195.
Date of creation: Aug 2005
Date of revision:
Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
- NEP-GEO-2006-02-05 (Economic Geography)
- NEP-INT-2006-02-05 (International Trade)
- NEP-SEA-2006-02-05 (South East Asia)
Please 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.:
- Mary Amiti, 1997.
"Specialisation Patterns in Europe,"
CEP Discussion Papers, Centre for Economic Performance, LSE
dp0363, Centre for Economic Performance, LSE.
- Mary Amiti, 1999. "Specialization patterns in Europe," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 135(4), pages 573-593, December.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
- Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 14(2), pages 45-53, Summer.
- Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262561476, December.
- Mitsuhiko Kataoka & Takahiro Akita, 2003. "Regional Income Inequality in the Post-War Japan," ERSA conference papers, European Regional Science Association ersa03p480, European Regional Science Association.
- Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, Elsevier, vol. 9(4), pages 469-479, November.
- Brülhart, Marius, 1996. "Regional Integration, Scale Economies and Industry Location in the European Union," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1435, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).
If references are entirely missing, you can add them using this form.