A Long-run Transition of Japan's Inter-regional Value Chains

Author Name OKUBO Toshihiro (Keio University) / SASAHARA Akira (Keio University)
Creation Date/NO. July 2022 22-E-067
Research Project Economic Policy Issues in the Global Economy
Download / Links


This paper examines the evolution of Japan’s inter-regional value chains using input-output tables from 1960 to 2005. We measure the degree of inter-regional production linkages based on various statistics including (1) the outsourcing index, (2) upstreamness, (3) downstreamness, and (4) empirical comparative advantages. The results show that, in most sectors, the expansion of inter-regional value chains slowed down after the 1990s, when imports from overseas started to increase rapidly. We also find that the value chains in the transport equipment sector have expanded exceptionally. This sectoral heterogeneity is confirmed by all the measures used in this study.