Advertisement

GIS and Spatio-temporal Trends in Inequality: Tracking Profitability According to Firm Size in Japanese Manufacturing, 1985–2006

  • Shawn Banasick
Part of the Geotechnologies and the Environment book series (GEOTECH, volume 1)

Abstract

This chapter examines the spatial patterns of profitability in Japanese manufacturing according to the size of the firm from 1985 to 2006. The study period captures the ‘‘bubble economy’’ of the late 1980s, the economic downturn and restructuring of the 1990s, and the economic expansion of the early 2000s. The Theil index of inequality and LISA cluster maps are used to identify trends in average profitability for six firm size categories. The results show that average profitability tends to decline along with firm size, and that instability in average profitability for larger size firms tended to be a major contribution to changes in total inequality. For much of the study period contributions from larger firms to inequality between the firm size categories was decreasing while their contributions to regional inequality were increasing. The analysis also suggests that there is substantial variation in average profitability trends for prefectures in the core manufacturing region.

Keywords

Uneven development Manufacturing GIS Japan 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Akita, T. (2003). Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method. Annals of Regional Science, 37, 55–77.CrossRefGoogle Scholar
  2. Anselin, L. (1995). Local indicators of spatial autocorrelation – LISA. Geographical Analysis, 27, 93–115.Google Scholar
  3. Anselin A., Sridharan, S., and. Gholston, S. (2007). Using exploratory spatial data analysis to leverage social indicator databases: the discovery of interesting patterns. Social Indicators Research, 82, 287–309.CrossRefGoogle Scholar
  4. Dehesh, A., and Pugh, C. (1999). The internationalization of post-1980 property cycles and the Japanese ‘bubble’ economy, 1986–96. International Journal of Urban and Regional Research, 23 (1), 147–164.CrossRefGoogle Scholar
  5. Fujita, M., and Hu, D. (2001). Regional disparity in China 1985–1994: the effects of globalization and economic liberalization. Annals of Regional Science 35, 3–37.CrossRefGoogle Scholar
  6. Galbraith, J. and Berner, M. (2001). Measuring inequality and industrial change. In J. Galbraith and M. Berner (Eds.), Inequality and Industrial Change: A Global View (pp.16–32). Cambridge: Cambridge University Press.Google Scholar
  7. Galbraith, J., and Garcilazo, E. (2005). Pay inequality in Europe 1995–2000: convergence between countries and stability inside. The European Journal of Comparative Economics, 2(2), 139–175.Google Scholar
  8. Galbraith,J., Krytynskaia, L., and Wang, Q. (2004). The experience of rising inequality in Russia and China during the transition. The European Journal of Comparative Economics 1(1), 87–106.Google Scholar
  9. Glasmeier A., and Sugiura, N. (1991). Japan’s manufacturing system: small business, subcontracting and regional complex formation. International Journal of Urban and Regional Research, 15[s](3), 395–414.CrossRefGoogle Scholar
  10. Harada, Y., and Onishi, S. (2003). Japan’s great recession: what went wrong? Tokyo: Cabinet Office, Economic and Social Research Institute, ESRI Discussion Paper Series No. 77.Google Scholar
  11. Harvey, D. (2001). Spaces of Capital. New York: Routledge.Google Scholar
  12. Harvey, D. (2006). Spaces of Global Capitalism: Towards a Theory of Uneven Geographical Development. New York: Verso.Google Scholar
  13. Hoshi, T., and Kashyap, A. (2004). Japan’s Financial Crisis and Economic Stagnation, Journal of Economic Perspectives, 18[s](1), 3–26.CrossRefGoogle Scholar
  14. Kawai, H., and Urata, S. (2002). Entry of small and medium enterprises and economic dynamism in Japan. Small Business Economics, 18[s](1): 41–52.CrossRefGoogle Scholar
  15. Kimura, F. (2002). Subcontracting and the performance of small and medium firms in Japan. Small Business Economics, 18[s](1), 163–176.CrossRefGoogle Scholar
  16. Ministry of Economy Trade and Industry (METI) [previously known as Ministry of International Trade and Industry (MITI)] (various years). Census of Manufacturers. Tokyo: Research and Statistics Division, Minister’s Secretariat.Google Scholar
  17. Samuels, R., and Keller, W. (2003). Crisis and Innovation in Asian Technology. Cambridge: Cambridge University Press.Google Scholar
  18. Schneider, F. (1991). Efficiency and profitability: an inverse relationship according to the size of Austrian Firms? Small Business Economics, 3, 287–296.CrossRefGoogle Scholar
  19. Smith, N. (1990). Uneven Development: Nature, Capital and the Production of Space. Second Edition. Oxford: Basil Blackwell.Google Scholar
  20. Smith, N., and Dennis, W. (1987) The restructuring of geographic scale: coalescence and fragmentation of the northern core region. Economic Geography, 63[s](2), 160–182.CrossRefGoogle Scholar
  21. Sorensen, A. (2002). The Making of Urban Japan: Cities and Planning from Edo to the Twenty-First Century. New York: Routledge.Google Scholar
  22. Statistical Research and Training Institute 2008, Japan Statistical Yearbook. Tokyo: Statistics Bureau, Ministry of Internal Affairs and Communications.Google Scholar
  23. Webber M., and Rigby, D. (1996). The Golden Age Illusion: Rethinking Postwar Capitalism. London: Guilford Press.Google Scholar
  24. Whittaker D. (1997) Small Firms in the Japanese Economy. Cambridge: Cambridge University Press.Google Scholar

Copyright information

© Springer Science+Business Media B.V. 2009

Authors and Affiliations

  • Shawn Banasick
    • 1
  1. 1.Department of GeographyKent State UniversityKentOHUSA

Personalised recommendations