Industrial relocation policy, productivity and heterogeneous plants: Evidence from Japan

Toshihiro Okubo, Eiichi Tomiura

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Do regional policies for promoting periphery development attract high- or low-productivity firms? Though whether policies improve the core-periphery productivity gap hinges on this question, no consensus is found in theoretical models. This paper uses plant-level data covering all regions in Japan during the period of active relocation policies. Our estimation results from plant-level regressions and propensity-score matching show that the average productivity of plants is significantly low in regions targeted by relocation policy programs. By comparing productivity distributions across plants before and after the start of each policy program, we find that low-productivity plants are attracted to targeted regions.

Original languageEnglish
Pages (from-to)230-239
Number of pages10
JournalRegional Science and Urban Economics
Volume42
Issue number1-2
DOIs
Publication statusPublished - 2012 Jan

Fingerprint

move
relocation
productivity
Japan
evidence
regional policy
policy
Relocation
Productivity
firm
regression

Keywords

  • Industrial relocation policy
  • Plant-level data
  • Productivity
  • Subsidy

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies

Cite this

Industrial relocation policy, productivity and heterogeneous plants : Evidence from Japan. / Okubo, Toshihiro; Tomiura, Eiichi.

In: Regional Science and Urban Economics, Vol. 42, No. 1-2, 01.2012, p. 230-239.

Research output: Contribution to journalArticle

@article{275c186191854ea893804124fce4d96e,
title = "Industrial relocation policy, productivity and heterogeneous plants: Evidence from Japan",
abstract = "Do regional policies for promoting periphery development attract high- or low-productivity firms? Though whether policies improve the core-periphery productivity gap hinges on this question, no consensus is found in theoretical models. This paper uses plant-level data covering all regions in Japan during the period of active relocation policies. Our estimation results from plant-level regressions and propensity-score matching show that the average productivity of plants is significantly low in regions targeted by relocation policy programs. By comparing productivity distributions across plants before and after the start of each policy program, we find that low-productivity plants are attracted to targeted regions.",
keywords = "Industrial relocation policy, Plant-level data, Productivity, Subsidy",
author = "Toshihiro Okubo and Eiichi Tomiura",
year = "2012",
month = "1",
doi = "10.1016/j.regsciurbeco.2011.09.004",
language = "English",
volume = "42",
pages = "230--239",
journal = "Regional Science and Urban Economics",
issn = "0166-0462",
publisher = "Elsevier",
number = "1-2",

}

TY - JOUR

T1 - Industrial relocation policy, productivity and heterogeneous plants

T2 - Evidence from Japan

AU - Okubo, Toshihiro

AU - Tomiura, Eiichi

PY - 2012/1

Y1 - 2012/1

N2 - Do regional policies for promoting periphery development attract high- or low-productivity firms? Though whether policies improve the core-periphery productivity gap hinges on this question, no consensus is found in theoretical models. This paper uses plant-level data covering all regions in Japan during the period of active relocation policies. Our estimation results from plant-level regressions and propensity-score matching show that the average productivity of plants is significantly low in regions targeted by relocation policy programs. By comparing productivity distributions across plants before and after the start of each policy program, we find that low-productivity plants are attracted to targeted regions.

AB - Do regional policies for promoting periphery development attract high- or low-productivity firms? Though whether policies improve the core-periphery productivity gap hinges on this question, no consensus is found in theoretical models. This paper uses plant-level data covering all regions in Japan during the period of active relocation policies. Our estimation results from plant-level regressions and propensity-score matching show that the average productivity of plants is significantly low in regions targeted by relocation policy programs. By comparing productivity distributions across plants before and after the start of each policy program, we find that low-productivity plants are attracted to targeted regions.

KW - Industrial relocation policy

KW - Plant-level data

KW - Productivity

KW - Subsidy

UR - http://www.scopus.com/inward/record.url?scp=80053479497&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=80053479497&partnerID=8YFLogxK

U2 - 10.1016/j.regsciurbeco.2011.09.004

DO - 10.1016/j.regsciurbeco.2011.09.004

M3 - Article

AN - SCOPUS:80053479497

VL - 42

SP - 230

EP - 239

JO - Regional Science and Urban Economics

JF - Regional Science and Urban Economics

SN - 0166-0462

IS - 1-2

ER -