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Changing Economic Geography and Vertical Linkages in Japan

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  • Eiichi Tomiura

Abstract

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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  • Eiichi Tomiura, 2003. "Changing Economic Geography and Vertical Linkages in Japan," NBER Working Papers 9899, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:9899
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    Cited by:

    1. Mendoza, Jorge Eduardo, 2003. "Efectos de la aglomeración y los encadenamientos industriales en el patrón de crecimiento manufacturero en México
      [Manufacturing specialization and urban aglommeration in the largest cities of Mexi
      ," MPRA Paper 2854, University Library of Munich, Germany, revised 2003.
    2. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank.
    3. Kyoji Fukao & Toshihiro Okubo, 2004. "Why Has the Border Effect in the Japanese Market Declined?: The Role of Business Networks in East Asia," Hi-Stat Discussion Paper Series d03-24, Institute of Economic Research, Hitotsubashi University.
    4. Jurgen Essletzbichler & Kazuo Kadokawa, 2010. "The Evolution of Regional Labour Productivities in Japanese Manufacturing, 1968-2004," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1189-1205.
    5. Fukao, Kyoji & Okubo, Toshihiro, 2011. "Why Has the Border Effect in the Japanese Machinery Sectors Declined?: The Role of Business Networks in East Asian Machinery Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 651-671.
    6. Dilip Saikia, 2011. "Does Economic Integration Affect Spatial Concentration of Industries? Theory and a Case Study for India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 89-114, December.
    7. Saikia, Dilip, 2011. "Does Economic Integration Affect Spatial Concentration of Industries? Theory and a Case Study for India," MPRA Paper 64199, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R34 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Input Demand Analysis

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