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2023 | Buch

Industrial Location and Vitalization of Regional Economy

herausgegeben von: Toshiharu Ishikawa, Daisuke Nakamura

Verlag: Springer Nature Singapore


Über dieses Buch

This book explains the roles of the industrial location in vitalizing regional economies in various economic environments created due to the progress of globalization. Here, this book elucidates the impact of industrial location and locational factors on regional economies. It clarifies the effects on industrial location of regulations and corporate tax. And the book explains the regional economic influence of the employment and agglomeration that are factors influencing the location. It also focuses on some countries and examines the relationships between the industrial location and the vitalization of regional economy in each country. This analysis covers the automotive and high-tech industries in the northeastern region of China, the impact of urban systems on regional development in the Philippines, and firms in revitalization in the northern region of Sweden. And it reveals achievements and challenges in each region. Finally, the book clarifies that the level of achievement in regional development is related to the educational environment. It also suggests that the industrial composition of a region is influenced by the level of regional cooperation with other regions. The analyses in the book show that a region must select the industries that match its newly emerged regional characteristics for vitalization.


Chapter 1. The Effect of Regulation on a Dominant Firm to Protect Fringe Firms in a Local Market
A model of competition between a large-scale dominant firm and fringe firms is analyzed to examine the effect of market share regulation on the dominant firm to protect the small firms. One feature of the model is that the dominant firm and the small firms provide close but different services to consumers. Because business stealing effects are possible for both the dominant firm’s and small firms’ entries, the effect on social welfare is generally indefinite. When small firms face the danger of extinction because of the expansion of the dominant firm, it is demonstrated that the effect is evaluated solely by the excessiveness of the number of small firms. As small firms tend to enter excessively when there is spatial competition, the market share regulation on the dominant firm prevents efficient outcome unless small firms are eliminated. In most regional retail markets in Japan, small ordinary stores are far from total elimination, so a restriction on the expansion of large-scale stores is not needed.
Akio Torii
Chapter 2. Corporate Taxation and Regional Economic Development in Japan: A Panel Analysis of Prefectural-Level Data
Japan’s Business Location Promotion Law was enacted with the aim of revitalizing regional economies through decentralized industrial growth. This paper analyzes the effect of corporate tax policy—modeling tax burden as the marginal effective tax rate (METR) at the prefectural level—on regional economic development by estimating its impact on firms’ decisions about where to locate new facilities. The key findings can be summarized as follows: (1) The effect of corporate taxation on regional economic development—modeled as employment in the manufacturing sector—is significantly negative at the national level. However, when the country is split into two categories—Japan’s three major metropolitan areas versus all other prefectures (“provincial regions”)—the effect is not statistically significant in either category. (2) Several independent variables unrelated to tax burden also influence regional economic development. Notably, market characteristics—modeled as population size—has a significantly positive effect both at the national level and separately within each regional category. The nationwide model indicates that the effect of market characteristics is considerably larger than that of corporate taxation. (3) The public service of highway infrastructure has a significantly positive impact on manufacturing employment within Japan’s three major metropolitan areas.
Masahiro Shinohara
Chapter 3. Economies of Scale and Cumulative Causation
This paper examines ‘Verddorn’s Law’, i.e. the relation between employment and output growth across the NUTS-3 regions of the European Union. Moreover, an explanation is provided as to how ‘Verdoorn’s Law’ sets up a process of cumulative causation. Following the relevant literature, the empirical assessment is conducted using spatial econometric techniques. The empirical results provide considerable support to the validity of ‘Verdoorn’s Law’. A more detailed analysis suggests that differences in regional growth rates perpetuate a ‘dualistic’ situation Europe, with advanced regions growing at the expanse of less-developed regions.
Stilianos Alexiadis
Chapter 4. Firms’ Human Resource Management for Local Economy and Wellbeing
This article addresses how firms can utilise human resource management through cooperative behaviour across a region. The outcome may improve not only the efficiency of production for the local firm but also the level of residents’ wellbeing. The conceptual idea of this article is similar to that of localisation economies, which work within the same industry. However, our idea is applicable among different industries as long as intermediaries properly operate the regional economic system for some local issues in a small-scale non-metropolitan area. Hence, rural agglomeration economies are partly employed in this analysis together with incentive theory about firms, individuals, and intermediaries. As described throughout the article, rural agglomeration economies are different from established notions of agglomeration economies such as localisation economies and urbanisation economies. This article also demonstrates how a sustainable region, which has the optimal economies of scale and scope under partnerships with neighbouring areas, can be organised.
Daisuke Nakamura
Chapter 5. The Influence of Co-Agglomeration of Producer Services and Manufacturing on Urban Total Factor Productivity in China
This paper examines the influence of the co-agglomeration of producer services and manufacturing on urban TFP based on a dynamic panel model. It is found that the co-agglomeration of producer services and manufacturing can hinder the improvement of urban total factor productivity in the whole country and small and medium-sized cities. And on this basis, this paper focuses on the mechanism of manufacturing agglomeration between producer services agglomeration and urban total factor productivity based on a mediation effect model. It can be concluded that there is a “partial mediation effect” between producer services agglomeration and urban total factor productivity through manufacturing agglomeration, which indicates that producer services agglomeration can improve urban total factor productivity by inhibiting manufacturing agglomeration.
Na Wang
Chapter 6. The Green Industry of Northern Sweden—Will the Boom also Build Growth?
Currently, Northern Sweden faces a phase of new industrialisation. Large “green” industrial projects are located or planned to be initiated in the region. Attractors are a reliable supply of green energy, land for large establishments and social as well as political stability. Initially, the actors are factories for the production of batteries and fossil-free steel, but also bitcoin mines, data server halls, etc. have been established. Following are consultants, real estate actors, architects, planners etc. In this respect, the green “reindustrialisation” has the potential to change the relatively slow growth in the region. The first long wave of industry ended in the 1970s, in a process that involved many elements of a “resource curse”. In the paper, after a presentation of facts, visions and narratives connected with this change, we analyse the economic background and forces behind the stagnation. We ask if the region have the insights and leadership that may exploit the situation and move the region on to a path of growth? Labour and housing are needed, but the region must also develop institutions, narratives and habits that will keep and attract a broader set of assets. Legislation, policy and narratives at national and European levels are other obstacles for growth.
Lars Westin
Chapter 7. Revitalization of the Economy of Northeast China
The economic stagnation in the Northeast China showed sharp contrast with the rapid economic growth of China as a whole. Revitalization of Northeast China is one of the important practices in regional development. Besides the long term influences of planned economy, the changes of population, especially aging and lower birth rates were also regarded as important factors. However, the decrease of the working-age population and total population are not necessarily to impact negatively on economic growth if labor productivity and capital stock increase. In addition, though Jilin province, Liaoning Province and Heilongjiang Province locate in the Northeast China and are the main parts of the old industrial base, there are still many differences from perspectives of aggregate demand and supply, and it is essential to consider the complementarities among these provinces when making strategic policies. So to revitalize the Northeast economies in the new era, making strategies and policies individually may not be the best method, building up the complementary relationship among the three provinces based on their characters and designing “hub-and-spoke” for different industries in detail are better choices. At the same time, the government should make decisions from demand-side perspective subject to demographic change, decarbonization and the trend of the fourth industrial revolution driven by cutting-edge technologies and digital transformation.
He Gao, Yoji Taniguchi
Chapter 8. The Structure and Evolution of City System in the Philippines
The recent economic growth in the Philippines has been accompanied by a rising rate of urbanization. While some places are able to benefit from the economic expansion and increasing urbanization, others are left behind. To better understand the problem of widening spatial disparity and craft policies that would make urbanization more inclusive, it is vital to look at how cities are organized and how that affects socio-economic conditions. This study analyzes the structure of the city system within the provinces in the Philippines from 1990–2020. In general, the structure of the city system in provinces has remained almost unchanged for the past three decades. Cities or municipalities were able to preserve their sizes and rank in the system. This study also explores the link between the city system and socio-economic conditions. Provinces with a city system, where cities are geographically adjacent to one another and where the population is concentrated, typically have superior socioeconomic conditions. While provinces with a city system in which both population and cities are relatively dispersed, tend to have an inferior socio-economic condition. This study also classifies provinces based on the link between the city system and socio-economic conditions and outlines appropriate policy recommendations.
Arianne Dumayas
Chapter 9. Roles of Education in Expenditure Inequality between Urban and Rural Areas: Indonesia, the Philippines, and India
This study selects Indonesia, the Philippines, and India among Asian developing countries and, based on household survey data, examines the determinants of urban–rural disparities in per capita consumption expenditure in these three countries, with a focus on education, using the Blinder–Oaxaca decomposition method. In both Indonesia and India, inequality in per capita consumption expenditure, as measured by the Theil index, tended to expand during the observation period. In the Philippines, inequality in per capita expenditure improved over the period, although the level of inequality still remains high. The share of inequality between urban and rural areas is relatively lower than that of inequality within urban and rural areas, due to the use of the conventional Theil decomposition method. However, the gaps between urban and rural areas are not small enough for their impact to be ignored, when using Elbers’ alternative decomposition approach as a supplementary tool for the conventional Theil decomposition method. This study therefore attempts to decompose the differences in mean per capita consumption expenditure between urban and rural areas into several household features, including education, using the Blinder–Oaxaca decomposition method. As a result, in Indonesia, the Philippines, and India, differences in educational endowments appear to have been a key determinant of urban–rural disparity, accounting for approximately 30–60% of the urban–rural expenditure gap. In addition, differences in job sectors (agricultural sector vs non-agricultural sector) also contribute to the expenditure gap, albeit to a lesser extent.
Mitsuhiro Hayashi
Chapter 10. Examination of Regional Production Activity Using City System and Regional Connection Indexes
The agglomeration economy is changing with the progress of the globalized economy. In addition to the place-based economy, the connection economy has exerted its influence on firms’ activities. This paper divides the connection economy into the city system economy and the regional connection economy and devises two indexes to indirectly measure their influence. Using these two indexes, the paper classifies 47 prefectures in Japan into four categories and considers the impact of connection economies on regional production activities. This study clarifies the following two points. The 47 prefectures in Japan are arranged with regularity according to the strength of the connection economy. Prefectures that largely enjoy the connection economies have large economic activities and factory scales in their territories becomes smaller. On the other hand, prefectures with low connection economies have larger factory scales in order to enjoy more place-based economies. It can be said as follows. The agglomeration economy continues to have a significant impact on the composition of firms’ activity in each region.
Toshiharu Ishikawa
Industrial Location and Vitalization of Regional Economy
herausgegeben von
Toshiharu Ishikawa
Daisuke Nakamura
Springer Nature Singapore
Electronic ISBN
Print ISBN