Industrial cluster policy and transaction networks: Evidence from firm-level data in Japan

Toshihiro Okubo, Tetsuji Okazaki, Eiichi Tomiura

Research output: Contribution to journalArticlepeer-review

Abstract

Cluster policy is designed to facilitate inter-firm networking. We examine industrial clusters in Japan based on firm-level transaction data. Cluster firms significantly expand transaction networks not only with local firms but also with firms in the agglomerated core Tokyo. We confirm the robustness of the results with historical policy experience of the regions as an instrumental variable and the cluster participation in a later period for a placebo test. By disaggregating firms in their relationships with financial institutions, we find that cluster firms expanding networks with firms in Tokyo are financed mainly by regional banks.

Original languageEnglish
Pages (from-to)1990-2035
Number of pages46
JournalCanadian Journal of Economics
Volume55
Issue number4
DOIs
Publication statusPublished - 2022 Nov 1

ASJC Scopus subject areas

  • Economics and Econometrics

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