Changing economic geography and vertical linkages in Japan

Eiichi Tomiura

No 133, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: In Japan, the manufacturing has become geographically dispersed in the 1990s, when the import has drastically increased after the historic exchange rate appreciation. This suggests the possibility that regional input-output linkages are undermined by import penetration. The regression results indicate the decline of industrial concentrations, particularly those previously established near large output absorbers. This paper also finds that local knowledge spillovers and availability of immobile specialized labor affect regional growth. These imply that the geography matters for industrial locations rather through the supply of inputs, especially non-tradable inputs, than through the demand for tradable outputs.

JEL-codes: F14 J23 R12 R34 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2002-11, Revised 2003-01
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Citations: View citations in EconPapers (10)

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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp133.pdf Revised version, 2003 (application/pdf)

Related works:
Journal Article: Changing economic geography and vertical linkages in Japan (2003)
Working Paper: Changing Economic Geography and Vertical Linkages in Japan (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:133

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