TY - JOUR AU - Tomiura,Eiichi TI - Changing Economic Geography and Vertical Linkages in Japan JF - National Bureau of Economic Research Working Paper Series VL - No. 9899 PY - 2003 Y2 - August 2003 UR - http://www.nber.org/papers/w9899 L1 - http://www.nber.org/papers/w9899.pdf N1 - Author contact info: Eiichi Tomiura Kobe University Research Institute for Economics and Business 2-1 Rokko-dai, Nada-ku, Kobe, Hyogo 657-8501 Japan Tel: 81-78-803-7008 Fax: 81-78-803-7059 E-Mail: tomiura@rieb.kobe-u.ac.jp AB - In Japan, the manufacturing has become geographically dispersed in the 1990s, when the import share has risen after the historic exchange rate appreciation. As is consistent with the interpretation that import penetration undermines regional input-output linkages, our regressions detect the significant decline of industrial concentrations previously established near output absorbers, especially in industries with high import share growths. This paper also finds that local knowledge spillovers and immobile specialized labor affect regional growth. Thus, while regional demand of tradable outputs matters less, regional supply of inputs, especially non-tradable inputs, remains critical for manufacturing locations. ER -