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Geographic Concentration of Manufacturing Industries in Japan: Testing Hypotheses of new Economic Geography

This paper investigates the changing geographical pattern of manufacturing industries in Japan between 1985 and 1995 and explores factors of their geographic concentration. A regression analysis is conducted to test some hypotheses that are derived directly from early models of the New Economic Geography (NEG). Regression results indicate that the geographic concentration of Japanese manufacturing industries seems to be determined by some combination of internal economies of scale, transportation costs, and factor intensity. However, inter-industry linkages are found to be an insignificant factor of geographic concentration. As posited by the NEG theories, Japanese manufacturing industries with larger internal economies of scale and smaller unit transportation costs tend to have a higher level of geographic concentration. Japanese manufacturing data also support the Heckscher-Ohlin theory: labor- or capital-intensive industries tend to have a higher level of geographic concentration.

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File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2006_04.pdf
File Function: First version, 2006
Download Restriction: no

Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2006_04.

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Length: 35 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:iuj:wpaper:ems_2006_04
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  1. Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
  2. Mary Amiti, 1997. "Specialisation Patterns in Europe," CEP Discussion Papers dp0363, Centre for Economic Performance, LSE.
  3. Keith Head & Thierry Mayer, 2004. "The Empirics of Agglomeration and Trade," Sciences Po publications info:hdl:2441/10191, Sciences Po.
  4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  5. Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 45-53, Summer.
  6. Guy Dumais & Glenn Ellison & Edward L. Glaeser, 2002. "Geographic Concentration As A Dynamic Process," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 193-204, May.
  7. Pierre-Philippe Combes & Henry G. Overman, 2003. "The spatial distribution of economic activities in the European Union," LSE Research Online Documents on Economics 20023, London School of Economics and Political Science, LSE Library.
  8. Mitsuhiko Kataoka & Takahiro Akita, 2003. "Regional Income Inequality in the Post-War Japan," ERSA conference papers ersa03p480, European Regional Science Association.
  9. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
  10. repec:spo:wpecon:info:hdl:2441/10191 is not listed on IDEAS
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