Fukao, Kyoji; Okubo, Toshihiro - Institute of Economic Research, Hitotsubashi University - 2008
This paper analyzes the causes of the decline in Japan's border effect in four machinery industries (electrical … trade between two regions (countries); moreover, we find that we can explain 35% of the decline in Japan's border effect … trade. In the estimation, we explicitly take account of firms' networks. We find that ownership relations usually enhance …