Reallocation of Production Factors in the Regional Economies in Japan : Towards an Application to the Great East-Japan Earthquake

Abstract

Examining the recovery processes of the Great East-Japan Earthquake and the Hanshin-Awaji Earthquake, we find that the reallocation mechanism affects economic growth of the recovery period in the devastated regions. Using the R-JIP databas, which provides value added and production factors at the prefectural and industry levels, we break down labor productivity growth into the capital deepening effect, a few reallocation effects, and the pure technological effect. We do not find an efficient movement of labor in the 2000s, although capital has moved within a prefecture efficiently. When we focus on Hyogo prefecture where the Hanshin-Awaji Earthquake occurred in 1995, we find that the decline in reallocation effects slowed labor productivity growth after the earthquake.Article学習院大学経済経営研究所年報.28:103-120(2014)departmental bulletin pape

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