The effect of deregulation of the "Act concerning the Industry Restriction"

Shinya Fukui
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Shinya Fukui: Graduate School of Economics, Kobe University / Senior Researcher, Osaka Prefectural Government, Japan

No 2002, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: Rapid population growth in large cities in Japan was seen from the mid 50’s to 60’s.This situation led to the enactment of the Act concerning the Industry Restriction (AIR) which mainly restricted manufacturing activity to avoid congestion and environmental problems in the central area of Metropolitan region and the central area of the Kinki region in Japan. Given the legislation’s concentrated impact in areas highly dependent on the manufacturing sector, deregulating the AIR thus assumes a similar effect in the Kinki. We conduct causal inference on this place-based policy to assess whether such an deregulation take effect. Our results support this view.

Pages: 28 pages
Date: 2020-02
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