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The Expanding Empire and Spatial Distribution of Economic Activities: The Case of the Colonization of Korea by Japan in the Prewar Period

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  • Kentaro Nakajima

    (Graduate School of Economics, Tohoku University)

  • Tetsuji Okazaki

    (Faculty of Economics, The University of Tokyo)

Abstract

After the First Sino-Japanese War and the Russo-Japanese War, Japan annexed Korea in 1910. We exploit this event as a natural experiment to investigate the effect of improved market access on the population growth. It is found that the tariff reduction raised the growth rate of population, and that that the impact of the tariff reduction was significantly larger in the areas close to the removed border between Japan and Korea. As predicted by spatial economics theory, market proximity was indeed a determinant of the spatial distribution of economic activities. In the context of economic history, our findings suggest that it is important to reconsider the economic consequences of imperialism from the angle of spatial economics. --

Suggested Citation

  • Kentaro Nakajima & Tetsuji Okazaki, 2015. "The Expanding Empire and Spatial Distribution of Economic Activities: The Case of the Colonization of Korea by Japan in the Prewar Period," CIRJE F-Series CIRJE-F-968, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2015cf968
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    References listed on IDEAS

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    1. Stephen J. Redding & Daniel M. Sturm, 2008. "The Costs of Remoteness: Evidence from German Division and Reunification," American Economic Review, American Economic Association, vol. 98(5), pages 1766-1797, December.
    2. Pines,David & Sadka,Efraim & Zilcha,Itzhak (ed.), 1998. "Topics in Public Economics," Cambridge Books, Cambridge University Press, number 9780521561365, October.
    3. Brülhart, Marius & Carrère, Céline & Trionfetti, Federico, 2012. "How wages and employment adjust to trade liberalization: Quasi-experimental evidence from Austria," Journal of International Economics, Elsevier, vol. 86(1), pages 68-81.
    4. Nakajima, Kentaro, 2008. "Economic division and spatial relocation: The case of postwar Japan," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 383-400, September.
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