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Mind the Remoteness! Income disparities across Japanese Prefectures

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  • Jesús López-Rodríguez
  • Daisuke Nakamura

Abstract

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%.

Suggested Citation

  • Jesús López-Rodríguez & Daisuke Nakamura, 2011. "Mind the Remoteness! Income disparities across Japanese Prefectures," Estudios de Economia, University of Chile, Department of Economics, vol. 38(2 Year 20), pages 393-417, December.
  • Handle: RePEc:udc:esteco:v:38:y:2011:i:2:p:393-417
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    References listed on IDEAS

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    More about this item

    Keywords

    New economic geography; Market access; Income disparities; Japanese prefectures.;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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