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Changing Economic Geography and Vertical Linkages in Japan

  • Eiichi Tomiura

In Japan, the manufacturing has become geographically dispersed in the 1990s, when the import share has risen after the historic exchange rate appreciation. As is consistent with the interpretation that import penetration undermines regional input-output linkages, our regressions detect the significant decline of industrial concentrations previously established near output absorbers, especially in industries with high import share growths. This paper also finds that local knowledge spillovers and immobile specialized labor affect regional growth. Thus, while regional demand of tradable outputs matters less, regional supply of inputs, especially non-tradable inputs, remains critical for manufacturing locations.

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File URL: http://www.nber.org/papers/w9899.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9899.

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Date of creation: Aug 2003
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Publication status: published as Tomiura, Eiichi. "Changing Economic Geography And Vertical Linkages In Japan," Journal of the Japanese and International Economies, 2003, v17(4,Dec), 561-581.
Handle: RePEc:nbr:nberwo:9899
Note: ITI
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