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Regional Business Cycles in Japan

Author

Listed:
  • Motonari Hayashida

    (Socio-Economic Research Center, Central Research Institute of Electric Power Industry, Tokyo, Japan, m-haya@criepi.denken.or.jp)

  • Geoffrey J. D. Hewings

    (Regional Economics Applications Laboratory, University of Illinois, Illinois, hewings@illinois.edu)

Abstract
In previous studies of regional business cycles in Japan, critical differences in the amplitudes and the turning points in business cycles by region were revealed. However, there is a problem in the previous studies; they relied on one series, typically an index of industrial production in manufacturing sectors, hence, it is necessary to include information on sectors other than manufacturing to provide a more complete measure of the business conditions of a region. Specifically, we extract a regional business index from four business indicators using the principal components and applied the regime switching model to identify the turning points in regional business cycles. Our result shows that the sector that generates the greatest influence on the business cycles differs by region. Furthermore, different regions have different features also from the viewpoint of the turning points of business cycles.

Suggested Citation

  • Motonari Hayashida & Geoffrey J. D. Hewings, 2009. "Regional Business Cycles in Japan," International Regional Science Review, , vol. 32(2), pages 119-147, April.
    • Handle: RePEc:sae:inrsre:v:32:y:2009:i:2:p:119-147
    DOI: 10.1177/0160017609332227
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    References listed on IDEAS

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    Cited by:

    1. Blanco, Emilio & Elosegui, Pedro & Izaguirre, Alejandro & Montes-Rojas, Gabriel, 2019. "Regional and state heterogeneity of monetary shocks in Argentina," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    2. Ron Martin & Peter Sunley & Peter Tyler, 2015. "Local growth evolutions: recession, resilience and recovery," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 141-148.
    3. Miyazaki, Tomomi, 2013. "Fiscal Policy and Regional Business Cycle Fluctuations in Japan," Discussion Paper Series 583, Institute of Economic Research, Hitotsubashi University.
    4. Hewings, Geoffrey J.D., 2014. "Spatially blind trade and fiscal impact policies and their impact on regional economies," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(4), pages 590-602.
    5. Ron Martin & Peter Sunley & Ben Gardiner & Peter Tyler, 2016. "How Regions React to Recessions: Resilience and the Role of Economic Structure," Regional Studies, Taylor & Francis Journals, vol. 50(4), pages 561-585, April.
    6. Yoshihiro Ohtsuka, 2018. "Large Shocks and the Business Cycle: The Effect of Outlier Adjustments," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 14(1), pages 143-178, April.
    7. Ana Gómez-Loscos & M. Dolores Gadea & Eduardo Bandres, 2020. "Business cycle patterns in European regions," Empirical Economics, Springer, vol. 59(6), pages 2639-2661, December.
    8. Sungyup Chung, 2016. "Assessing the regional business cycle asymmetry in a multi-level structure framework: a study of the top 20 US MSAs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 229-252, January.
    9. Sungyup Chung, 2016. "Assessing the regional business cycle asymmetry in a multi-level structure framework: a study of the top 20 US MSAs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 229-252, January.
    10. Asako, Kazumi & Onodera, Takashi & Ueda, Atsuko, 2014. "An Analysis of Regional Business Cycles using Prefectural Composite Indexes in Japan," Discussion Paper Series 603, Institute of Economic Research, Hitotsubashi University.

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