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Regional Inequality and Industrial Structures in Pre-War Japan: An Analysis Based on New Prefectural GDP Estimates

Author

Listed:
  • Jean-Pascal Bassino
  • Kyoji Fukao
  • Ralph Paprzycki
  • Tokihiko Settsu
  • Tangjun Yuan

Abstract

Studies comparing regional income in Japan before and after World War II have frequently drawn a picture of radical change from an economy characterized by large regional disparities to one characterized by small regional disparities. This paper comes to a very different conclusion. Based on estimates of prefecture-level value added for five benchmark years from 1890 to 1940 (a detailed description of our estimation methodology is provided), we examine trends in the gap of economic development between prefectures during the pre-war period and find that this gap was much smaller than claimed in preceding studies and, in fact, not much greater than during the post-war period. Observing, moreover, a decline in inter-prefectural differences in terms of per-capita gross value added during the pre-war period, we conduct a factor analysis and find that a major reason for this decline was a decline in inter-prefectural differences in same-industry labor productivity. Thus, the picture of modern Japan's economic development presented here is very different from the one painted by preceding studies.

Suggested Citation

  • Jean-Pascal Bassino & Kyoji Fukao & Ralph Paprzycki & Tokihiko Settsu & Tangjun Yuan, 2010. "Regional Inequality and Industrial Structures in Pre-War Japan: An Analysis Based on New Prefectural GDP Estimates," Global COE Hi-Stat Discussion Paper Series gd10-138, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:ghsdps:gd10-138
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    File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd10-138.pdf
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    References listed on IDEAS

    as
    1. Kyoji Fukao & Osamu Saito, 2006. "Japan's alternating phases of growth and outlook for the future," Hi-Stat Discussion Paper Series d06-196, Institute of Economic Research, Hitotsubashi University.
    2. Chiaki Moriguchi & Emmanuel Saez, 2006. "The Evolution of Income Concentration in Japan, 1886-2002: Evidence from Income Tax Statistics," NBER Working Papers 12558, National Bureau of Economic Research, Inc.
    3. Jean-Pascal Bassino, 2006. "Agricultural output and food supply in Meiji Japan," Post-Print hal-03061156, HAL.
    4. Sukkoo Kim, 1995. "Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in U. S. Regional Manufacturing Structure, 1860–1987," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 881-908.
    5. Bassino, Jean-Pascal, 2006. "The Growth of Agricultural Output and Food Supply in Meiji Japan: Economic Miracle or Statistical Artifact?," Economic Development and Cultural Change, University of Chicago Press, vol. 54(2), pages 503-520, January.
    6. Kyoji Fukao & Debin Ma & Tangjun Yuan, 2007. "Real Gdp In Pre‐War East Asia: A 1934–36 Benchmark Purchasing Power Parity Comparison With The U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(3), pages 503-537, September.
    7. Fumio Hayashi & Edward C. Prescott, 2008. "The Depressing Effect of Agricultural Institutions on the Prewar Japanese Economy," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 573-632, August.
    8. repec:ehl:wpaper:22557 is not listed on IDEAS
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    Cited by:

    1. Kota Ogasawara & Ian Gazeley & Eric B. Schneider, 2020. "Nutrition, Crowding, And Disease Among Low‐Income Households In Tokyo In 1930," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 60(1), pages 73-104, March.
    2. Ralph Paprzycki & Kyoji Fukao & Jean-Pascal Bassino & Tokihiko Settsu & Tangjun Yuan, 2013. "Regional inequality and migration in prewar Japan, 1890-1940," Working Papers 13012, Economic History Society.
    3. Kyoji FUKAO & Tatsuji MAKINO, 2015. "Aging, Interregional Income Inequality, and Industrial Structure: An empirical analysis based on the R-JIP Database and the R-LTES Database," Discussion papers 15022, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    JEL classification:

    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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