The evolution of regional labor productivities in Japanese manufacturing, 1968-2004

Essletzbichler J. and Kadokawa K. The evolution of regional labour productivities in Japanese manufacturing, 19682004. Regional Studies. The success of the Japanese economy in the post-war period was predicated on the rapid productivity catch-up of its manufacturing sector to Western economies, although productivity varied widely among Japanese regions. This paper examines the evolution of labour productivity in Japanese prefectures over the period 19682004. Employing Markov chain analysis, variance shiftshare analysis, and analysis of variance, the paper demonstrates that during the period of fast productivity growth, the Japanese economy was characterized by an increasing polarization of productivity levels, while the period of slow growth since the early 1990s produced convergence in regional productivity levels.