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Industrial agglomeration effects in Japan: Productive efficiency, market access, and public fiscal transfer


  • Akihiro Otsuka
  • Mika Goto
  • Toshiyuki Sueyoshi


This study examines whether agglomeration economies, market access and public fiscal transfer have a positive or negative influence on the productive efficiency of Japanese regional industries. To attain the research objective, stochastic frontier analysis is applied to a Japanese data set at a prefecture level which consists of estimated spatial and industrial economic activities from 1980 to 2002. An empirical result obtained in this study indicates that both the agglomeration economies and the improvement of market access have a positive influence on the productive efficiency of Japanese manufacturing and non-manufacturing industries. In contrast, the public fiscal transfer has a negative impact on the productive efficiency. These findings indicate that many prefectures (corresponding to States in the United States), which are characterized by weak market access and/or high dependence on public fiscal transfer, are often associated with their low productive efficiency. Copyright (c) 2010 the author(s). Papers in Regional Science (c) 2010 RSAI.

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  • Akihiro Otsuka & Mika Goto & Toshiyuki Sueyoshi, 2010. "Industrial agglomeration effects in Japan: Productive efficiency, market access, and public fiscal transfer," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 819-840, November.
  • Handle: RePEc:bla:presci:v:89:y:2010:i:4:p:819-840

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    Cited by:

    1. Kyoji Fukao & Victoria Kravtsova & Kentaro Nakajima, 2014. "How important is geographical agglomeration to factory efficiency in Japan’s manufacturing sector?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(3), pages 659-696, May.
    2. Chloé Duvivier, 2013. "Does Urban Proximity Enhance Technical Efficiency? Evidence From Chinese Agriculture," Journal of Regional Science, Wiley Blackwell, vol. 53(5), pages 923-943, December.
    3. Akihiro Otsuka & Mika Goto, 2016. "Total factor productivity and the convergence of disparities in Japanese regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 419-432, March.
    4. Akihiro Otsuka & Mika Goto, 2015. "Regional Policy and the Productive Efficiency of Japanese Industries," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 518-531, April.
    5. Goto, Mika & Otsuka, Akihiro & Sueyoshi, Toshiyuki, 2014. "DEA (Data Envelopment Analysis) assessment of operational and environmental efficiencies on Japanese regional industries," Energy, Elsevier, vol. 66(C), pages 535-549.
    6. Akihiro Otsuka & Mika Goto, 2015. "Agglomeration economies in Japanese industries: the Solow residual approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 401-416, March.
    7. Kraftova Ivana & Chladek Tomas & Minarik Jakub, 2011. "Do Globalisation and Economic Cycles Reduce the Sector Inequality of Supra-Regions?," European Spatial Research and Policy, De Gruyter Open, vol. 18(2), pages 111-127, November.

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