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Economic division and spatial relocation: The case of postwar Japan

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  • Nakajima, Kentaro

Abstract

This paper empirically investigates the effect of accessibility to markets on economic growth by using a new economic geography (NEG) model and the case of the economic separation of Japan and Korea after World War II. Korea was a Japanese colony from 1910 to 1945, and gained independence after World War II. This historical relationship between Japan and Korea can be interpreted as one of economic integration and division. We focus on the period of division and estimate the effect of the loss of the accessibility to the Korean market on the growth in postwar Japanese cities. By using a difference-in-differences (DD) methodology, we confirm that cities located close to Korea showed a relatively greater decline after the division of the colonial market, implying that accessibility to markets positively affects economic growth. Moreover, our results suggest that the large Japanese migratory movement observed in 1950-1970 can be interpreted as the relocation of industry that resulted from the division shock in 1945. J. Japanese Int. Economies 22 (3) (2008) 383-400.

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  • Nakajima, Kentaro, 2008. "Economic division and spatial relocation: The case of postwar Japan," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 383-400, September.
    • Handle: RePEc:eee:jjieco:v:22:y:2008:i:3:p:383-400
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    Cited by:

    1. Ho Yeon KIM & Petra de Jong & Jan Rouwendal & Aleid Brouwer, 2012. "Shrinking population and the urban hierarchy [Housing preferences and attribute importance among Dutch older adults: a conjoint choice experiment]," ERSA conference papers ersa12p350, European Regional Science Association.
    2. Shonchoy, Abu S. & Tsubota, Kenmei, 2016. "Partition, independence, and population geography in Bengal," IDE Discussion Papers 590, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Kentaro Nakajima & Tetsuji Okazaki, 2018. "The expanding Empire and spatial distribution of economic activity: the case of Japan's colonization of Korea during the prewar period," Economic History Review, Economic History Society, vol. 71(2), pages 593-616, May.
    4. Stephen J. Redding, 2020. "Trade and Geography," NBER Working Papers 27821, National Bureau of Economic Research, Inc.
    5. Shinya Fukui, 2020. "Firm Agglomeration in Knowledge Intensive Business Service Sectors," Discussion Papers 2008, Graduate School of Economics, Kobe University.
    6. Kentaro Nakajima & Kensuke Teshima, 2018. "Identifying Neighborhood Effects among Firms: Evidence from Location Lotteries of the Tokyo Tsukiji Fish Market," 2018 Meeting Papers 575, Society for Economic Dynamics.
    7. Asuka Imaizumi & Kaori Ito & Tetsuji Okazaki, 2008. "Impact of Natural Disasters on Industrial Agglomeration: A Case of the 1923 Great Kanto Earthquake," CIRJE F-Series CIRJE-F-602, CIRJE, Faculty of Economics, University of Tokyo.
    8. Kentaro Nakajima & Tetsuji Okazaki, 2015. "The Expanding Empire and Spatial Distribution of Economic Activities: The Case of the Colonization of Korea by Japan in the Prewar Period," CIRJE F-Series CIRJE-F-968, CIRJE, Faculty of Economics, University of Tokyo.
    9. Takashi Akamatsu & Tomoya Mori & Yuki Takayama, 2015. "Agglomerations in a multi-region economy: Poly-centric versus mono-centric patterns," KIER Working Papers 929, Kyoto University, Institute of Economic Research.
    10. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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