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The Annals of Regional Science

, Volume 61, Issue 1, pp 209–227 | Cite as

Location choice for Japanese frozen food industry in East Asia using domestic market access with the penetration rate of refrigerators

  • Maria Ikegawa
  • Suminori Tokunaga
Original Paper
  • 88 Downloads

Abstract

In the 2000s, after the Asian financial crisis, East Asian countries achieved rapid economic growth. Many Japanese frozen food companies focused on East Asian markets, but faced problems with the cold chain and refrigerators. In this study, we use the penetration rate of household refrigerators in the host country to calculate market access, which we then use to estimate the location choice model. The results of the conditional logistic model show that the location choice for Japanese frozen food companies is affected not only by the penetration rate of refrigerators, but also by traditional cost-reduction factors, such as wages and investment promotion policies in the host country. In addition, domestic market access encourages Japanese FDI in East Asia.

JEL Classification

F23 R11 R30 

Notes

Acknowledgements

We are grateful for this opportunity and would like to thank Prof. Akune (Reitaku University) for assistance in writing this paper and helping with our studies. Also, we would like to thank Editage (www.editage.jp) for English language editing.

Funding

Funding was provided by Japan Society for the Promotion of Science (Grant No. 24330073).

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Policy Research InstituteMinistry of Agriculture, Forestry and FisheriesChiyodaJapan
  2. 2.Reitaku UniversityKashiwaJapan

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