IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v12y2024i6p151-d1414941.html
   My bibliography  Save this article

Spatial Aspect of Global Value Chain in East Asia: How Ports and Airports Shape Industrial Clusters in East Asia

Author

Listed:
  • Satoru Kumagai

    (IDE-JETRO (Institute of Developing Economies, Japan External Trade Organization), Chiba 261-8545, Japan)

Abstract

This paper examines how geography matters for the location of industries in East Asia, employing regression analyses on a novel and comprehensive regional GDP dataset. This study examines how geography affects industrial location patterns, particularly the role of infrastructure, such as ports and airports. This paper analyzes the current economic geography of East Asia using the novel dataset. The regression analyses utilize location quotients as the dependent variable and incorporate explanatory variables, such as domestic/foreign market access, per capita income, population density, and distance-based dummies for ports and airports. The findings reveal that the determinants of industrial location differ significantly across industries. The relative importance of domestic versus foreign market access and proximity to ports and airports varies across sectors. The results imply that countries/regions cannot easily host industries of their choice, as different industries require distinct locational characteristics.

Suggested Citation

  • Satoru Kumagai, 2024. "Spatial Aspect of Global Value Chain in East Asia: How Ports and Airports Shape Industrial Clusters in East Asia," Economies, MDPI, vol. 12(6), pages 1-15, June.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:6:p:151-:d:1414941
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/12/6/151/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/12/6/151/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kaoru Natsuda & Noriyuki Segawa & John Thoburn, 2013. "Liberalization, Industrial Nationalism, and the Malaysian Automotive Industry," Global Economic Review, Taylor & Francis Journals, vol. 42(2), pages 113-134, June.
    2. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    3. Nicholas Crafts & Anthony Venables, 2003. "Globalization in History.A Geographical Perspective," NBER Chapters, in: Globalization in Historical Perspective, pages 323-370, National Bureau of Economic Research, Inc.
    4. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Firms in the European Union," Post-Print hal-00267438, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Dan & Meissner, Christopher M., 2015. "Market potential and the rise of US productivity leadership," Journal of International Economics, Elsevier, vol. 96(1), pages 72-87.
    2. Kazunobu Hayakawa & Zheng Ji & Ayako Obashi, 2010. "Industrial Production in Space: A Comparison of East Asia and Europe," Keio/Kyoto Joint Global COE Discussion Paper Series 2010-022, Keio/Kyoto Joint Global COE Program.
    3. Sean M. Dougherty, 2014. "Legal Reform, Contract Enforcement and Firm Size in Mexico," Review of International Economics, Wiley Blackwell, vol. 22(4), pages 825-844, September.
    4. Hayakawa, Kazunobu & Keola, Souknilanh & Silaphet, Korrakoun & Yamanouchi, Kenta, 2022. "Estimating the impacts of international bridges on foreign firm locations: a machine learning approach," IDE Discussion Papers 847, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Sosa Andrés, Maximiliano & Nunnenkamp, Peter & Busse, Matthias, 2013. "What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-53.
    6. Bala, Alain Pholo & Peeters, Dominique & Thomas, Isabelle, 2014. "Spatial issues on a hedonic estimation of rents in Brussels," Journal of Housing Economics, Elsevier, vol. 25(C), pages 104-123.
    7. Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2012. "Innovation Drivers, Value Chains and the Geography of Multinational Firms in European Regions," LEQS – LSE 'Europe in Question' Discussion Paper Series 53, European Institute, LSE.
    8. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    9. Fatica, Serena, 2009. "Taxation and the quality of institutions: asymmetric effects on FDI," MPRA Paper 24179, University Library of Munich, Germany, revised Jun 2010.
    10. Bagoulla, Corinne & Péridy, Nicolas, 2011. "Market access and the other determinants of North–South manufacturing location choice: An application to the Euro-Mediterranean area," Economic Systems, Elsevier, vol. 35(4), pages 537-561.
    11. Anders Akerman & Rikard Forslid, 2009. "Firm Heterogeneity and Country Size Dependent Market Entry Costs," Global COE Hi-Stat Discussion Paper Series gd09-056, Institute of Economic Research, Hitotsubashi University.
    12. Han, Feng & Ke, Shanzi, 2016. "The effects of factor proximity and market potential on urban manufacturing output," China Economic Review, Elsevier, vol. 39(C), pages 31-45.
    13. Prema-chandra Athukorala & Hal Hill, 2010. "Asian trade: long-term patterns and key policy issues," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(2), pages 52-82, November.
    14. Hiroyuki Taguchi & Ni Lar, 2015. "Fragmentation And Trade Of Machinery Parts And Components In Mekong Region," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(05), pages 1-21, December.
    15. Robert C. Allen, 2005. "Capital Accumulation, Technological Change, and the Distribution of Income during the British Industrial Revolution," Economics Series Working Papers 239, University of Oxford, Department of Economics.
    16. Obashi, Ayako, 2010. "Stability of production networks in East Asia: Duration and survival of trade," Japan and the World Economy, Elsevier, vol. 22(1), pages 21-30, January.
    17. Gregory Corcos & Massimo Del Gatto & Giordano Mion & Gianmarco I.P. Ottaviano, 2012. "Productivity and Firm Selection: Quantifying the ‘New’ Gains from Trade," Economic Journal, Royal Economic Society, vol. 122(561), pages 754-798, June.
    18. Hirata, Hideaki & Otsu, Keisuke, 2016. "Accounting for the economic relationship between Japan and the Asian Tigers," Journal of the Japanese and International Economies, Elsevier, vol. 41(C), pages 57-68.
    19. Taguchi, Hiroyuki, 2022. "Risk of premature deindustrialization: the case of the latecomer’s developing countries in Asia," MPRA Paper 113551, University Library of Munich, Germany.
    20. Combes, Pierre-Philippe & Lafourcade, Miren & Thisse, Jacques-François & Toutain, Jean-Claude, 2011. "The rise and fall of spatial inequalities in France: A long-run perspective," Explorations in Economic History, Elsevier, vol. 48(2), pages 243-271, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:12:y:2024:i:6:p:151-:d:1414941. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.