Changing Economic Geography and Vertical Linkages in Japan

Eiichi Tomiura

No 9899, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In Japan, the manufacturing has become geographically dispersed in the 1990s, when the import share has risen after the historic exchange rate appreciation. As is consistent with the interpretation that import penetration undermines regional input-output linkages, our regressions detect the significant decline of industrial concentrations previously established near output absorbers, especially in industries with high import share growths. This paper also finds that local knowledge spillovers and immobile specialized labor affect regional growth. Thus, while regional demand of tradable outputs matters less, regional supply of inputs, especially non-tradable inputs, remains critical for manufacturing locations.

JEL-codes: R12 R34 (search for similar items in EconPapers)
Date: 2003-08
New Economics Papers: this item is included in nep-com, nep-geo and nep-sea
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Citations: View citations in EconPapers (7)

Published as Tomiura, Eiichi. "Changing Economic Geography And Vertical Linkages In Japan," Journal of the Japanese and International Economies, 2003, v17(4,Dec), 561-581.

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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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