Regional Economies and Keiretsu Groups in Japan

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論説(Article)This research investigates industrial accumulation in Japan's regional economies with a focus on corporate groups (keiretsu). The input-output analysis identifies the linkage effects in four selected prefectures with respect to their principal industries (automobile and electronics). We then examine the relationship between industrial linkages and characteristics of major keiretsu groups located in each prefecture. Groups examined, together with the prefecture where they operate, are: Toyota in Aichi Prefecture, Mazda in Hiroshima Prefecture, Matsushita-Panasonic in Osaka Prefecture and Hitachi in Ibaraki Prefecture. The paper demonstrates that the presence of keiretsu groups and their management decisions have profound impacts, through multiple layers of transactions, on the performance of regional economies. It also shows that diverse economic activities in the regional economy offer an opportunity to exploit the industrial concentration provided by keiretsu operations. This result presents important implications for the industrial policy debate including the issue of industrial cluster creation.
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