Measuring Economic Localization: Evidence from Japanese Firm-level Data

Kentaro Nakajima, 賢太郎 中島, ケンタロウ ナカジマ, Yukiko Saito, 有希子 齊藤, サイトウ、ユキコウメノ, Iichiro Uesugi, 威一郎 植杉 and イチロウ ウエスギ

No 10, Working Paper Series from Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University

Abstract: This paper examines location patterns of Japan’s manufacturing industries using a unique firm-level dataset on the geographic location of firms. Following the point-pattern approach proposed by Duranton and Overman (2005), we find the following. First, about half of Japan’s manufacturing industries can be classified as localized and the number of localized industries is largest for a distance level of 40 km or less. Second, several industries in the textile mill products sector are among the most localized, which is similar to findings for the UK, suggesting that there exist common factors across countries determining the concentration of industrial activities. Third, the distribution of distances between entrant (exiting) firms and remaining firms is, in most industries, not significantly different from a random distribution. These results suggest that most industries in Japan neither become more localized nor more dispersed over time and are in line with similar findings by Duranton and Overman (2008) for the UK. Fourth, a comparison with the service sector indicates that the share of localized industries is higher in manufacturing than in services, although the extent of localization among the most localized manufacturing industries is smaller than that among the most localized service industries, including financial service industries

Keywords: Micro-geographic data; Economic geography (search for similar items in EconPapers)
JEL-codes: R11 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2011-09
New Economics Papers: this item is included in nep-bec, nep-geo, nep-hme and nep-ure
Note: 40778
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/19327/ifn_wp010.pdf

Related works:
Journal Article: Measuring economic localization: Evidence from Japanese firm-level data (2012)
Working Paper: Measuring Economic Localization: Evidence from Japanese firm-level data (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hit:cinwps:10

Access Statistics for this paper

More papers in Working Paper Series from Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Digital Resources Section, Hitotsubashi University Library ().