Bayesian Estimation of Spatial Externalities Using Regional Production Function: The Case of China and Japan

Yoshihiro Hashiguchi

MPRA Paper from University Library of Munich, Germany

Abstract: This paper used regional panel data for Chinese provinces from 1979 to 2003, and for Japanese prefectures from 1955 to 1998, to estimate the spatial externalities (or spatial multiplier effects) using a production function and Bayesian methodology, and to investigate the long-run behavior of the spatial externalities of each country. According to the estimation results, China's spatial externalities increased its domestic production significantly after 1994, which tended to increase until 2003. Before 1993, however, its spatial externalities were not significant. Japan's spatial externalities showed fluctuating values throughout the sample period. Furthermore, the movement of the spatial externalities was correlated with Japan's business conditions: the externalities showed a high value in the economic boom, and a low value in the economic depression. This could mean that spatial externalities depend mainly on business conditions.

Keywords: Spatial Externalities; Bayesian Estimation; Production Function (search for similar items in EconPapers)
JEL-codes: C11 E23 N95 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-geo, nep-mac, nep-tra and nep-ure
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Related works:
Journal Article: Bayesian estimation of spatial externalities using regional production function: the case of China and Japan (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:17902

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