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Regional Policy and the Productive Efficiency of Japanese Industries

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  • Akihiro Otsuka
  • Mika Goto

Abstract

Otsuka A. and Goto M. Regional policy and the productive efficiency of Japanese industries, Regional Studies . This paper examines the impacts of agglomeration economies and fiscal transfer on productive efficiency in Japanese regional industries. Two popular methodologies are applied - stochastic frontier analysis (SFA) and data envelopment analysis (DEA) - to measure productive efficiency. The empirical findings are summarized as follows: (1) agglomeration economies improve productive efficiency; (2) fiscal transfer negatively influences productive efficiency; (3) those two findings are observed for aggregated manufacturing and non-manufacturing industries, and for sectors in manufacturing industries; and (4) the importance of agglomeration economies for regional industries has increased in recent years. Based on these results, this paper discusses effective regional policy for Japan.

Suggested Citation

  • Akihiro Otsuka & Mika Goto, 2015. "Regional Policy and the Productive Efficiency of Japanese Industries," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 518-531, April.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:4:p:518-531
    DOI: 10.1080/00343404.2013.795285
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    References listed on IDEAS

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    Cited by:

    1. Preeya Mohan & Toshihiro Okubo & Eric Strobl, 2020. "Natural Disasters and Industrial Production Efficiency: Evidence from Prewar Japan," Keio-IES Discussion Paper Series 2020-006, Institute for Economics Studies, Keio University.
    2. Kurt A. Hafner, 2020. "Diversity of industrial structure and economic stability: evidence from Asian gross value added," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 413-441, June.
    3. Akihiro Otsuka, 2018. "Regional Determinants of Energy Efficiency: Residential Energy Demand in Japan," Energies, MDPI, vol. 11(6), pages 1-14, June.

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