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Mind the Remoteness! Income disparities across Japanese Prefectures

  • Jesús López-Rodríguez
  • Daisuke Nakamura


In this paper we analyze the role played by Market access to explain income disparities among Japanese Prefectures for different periods of time. The results of the estimations suggest that 1) Market access plays an important role in the explanation of income disparities in Japan, 2) the effect of Market access is robust to the inclusion of control variables considered important in the explanation of the Japanese income disparities, 3) the estimations show a tendency for the Market access variable to lose explanatory power throughout the time. In this 10 year time span analyzed from 1996 to 2005 the decrease in explanatory power of Market access was around 15%.

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Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

Volume (Year): 38 (2011)
Issue (Month): 2 Year 2011 (December)
Pages: 393-417

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Handle: RePEc:udc:esteco:v:38:y:2011:i:2:p:393-417
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  1. Redding, Stephen & Schott, Peter K., 2003. "Distance, skill deepening and development: will peripheral countries ever get rich?," Journal of Development Economics, Elsevier, vol. 72(2), pages 515-541, December.
  2. Gordon H. Hanson, 1998. "Market Potential, Increasing Returns, and Geographic Concentration," NBER Working Papers 6429, National Bureau of Economic Research, Inc.
  3. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
  4. Bottazzi, Laura, 1999. "Innovation, Demand and Knowledge Spillovers: Theory and Evidence From European Regions," CEPR Discussion Papers 2279, C.E.P.R. Discussion Papers.
  5. Michael Roos, . "Wages and Market Potential in Germany," Discussion Papers in Economics 00_09, University of Dortmund, Department of Economics.
  6. Volker Nitsch, 2000. "National borders and international trade: evidence from the European Union," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 1091-1105, November.
  7. Rosina Moreno & Raffaele Paci & Stefano Usai, 2005. "Spatial spillovers and innovation activity in European regions," Environment and Planning A, Pion Ltd, London, vol. 37(10), pages 1793-1812, October.
  8. De Bruyne, Karolien, 2009. "Explaining the Location of Economic Activity. Is there a Spatial Employment Structure in Belgium?," Working Papers 2009/28, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  9. Annekatrin Niebuhr, 2006. "Market access and regional disparities," The Annals of Regional Science, Springer, vol. 40(2), pages 313-334, June.
  10. repec:tpr:qjecon:v:114:y:1999:i:1:p:83-116 is not listed on IDEAS
  11. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
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