Does immigration cause Japan prefectures' economy to diverge? Evidence from Geographically Weighted Panel Regression

Dung Anh Luong () and Yoichi Matsubayashi ()
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Dung Anh Luong: Graduate School of Economics, Kobe University
Yoichi Matsubayashi: Graduate School of Economics, Kobe University

No 2310, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This paper analyzes the impact of immigration on different macroeconomic indicators, using the production function. We use data on the immigrant stock and prefectures' accounts from 2009 to 2018. Geographically Weighted Panel Regression (GWPR) indicates that immigrants' positive impacts on employment, and negative impacts on capital-to-GDP ratio are significant in selective prefectures, which are resulted from an increase in GDP but not capital. Regressing the coefficients generated by GWPR on immigrant population grouped by education or industry reveal interesting patterns of economic impacts by immigrant workers.

Pages: 42 pages
Date: 2023-06
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