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

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  • Okubo, Toshihiro
  • Tomiura, Eiichi

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.

Suggested Citation

  • Okubo, Toshihiro & Tomiura, Eiichi, 2012. "Industrial relocation policy, productivity and heterogeneous plants: Evidence from Japan," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 230-239.
  • Handle: RePEc:eee:regeco:v:42:y:2012:i:1:p:230-239
    DOI: 10.1016/j.regsciurbeco.2011.09.004
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    Cited by:

    1. Hiroyuki Okamuro & Junichi Nishimura, 2015. "Local Management of National Cluster Policies: Comparative Case Studies of Japanese, German, and French Biotechnology Clusters," Administrative Sciences, MDPI, Open Access Journal, vol. 5(4), pages 1-27, November.
    2. SUZUKI Jun, 2017. "To Support R&D or Linkages? Seeking a better policy mix for SME support," Discussion papers 17098, Research Institute of Economy, Trade and Industry (RIETI).
    3. Jesús F. Lampón & Santiago Lago-Peñas & Pablo Cabanelas, 2016. "Can the periphery achieve core? The case of the automobile components industry in Spain," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 595-612, August.
    4. repec:gam:jsusta:v:9:y:2017:i:10:p:1766-:d:113696 is not listed on IDEAS
    5. repec:gam:jsusta:v:10:y:2018:i:8:p:2624-:d:160075 is not listed on IDEAS

    More about this item

    Keywords

    Industrial relocation policy; Subsidy; Productivity; Plant-level data;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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