Market Size, Linkages, and Productivity: A Study of Japanese Regions

Ravi Kanbur and Anthony J. Venables

in Spatial Inequality and Development

Published in print February 2005 | ISBN: 9780199278633
Published online April 2005 | e-ISBN: 9780191602191 | DOI:

Series: WIDER Studies in Development Economics

 Market Size, Linkages, and Productivity: A Study of Japanese Regions

More Like This

Show all results sharing this subject:

  • Economic Development and Growth


Show Summary Details


One account of spatial concentration focuses on productivity advantages arising from market size. The authors investigate this for 40 regions of Japan. Their results identify important effects of a region’s own size, as well as cost linkages between producers and suppliers of inputs. Productivity links to a more general form of ‘market potential’ or Marshall-Arrow-Romer externalities do not appear to be robust in our data. The effects they identify are economically quite important, accounting for a substantial portion of cross-regional productivity differences. A simple counterfactual shows that if economic activity were spread evenly over the 40 regions of Japan, aggregate output would fall by 5%.

Keywords: markets; productivity; regions

Chapter.  6080 words.  Illustrated.

Subjects: Economic Development and Growth

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.