Location choice for Japanese frozen food industry in East Asia using domestic market access with the penetration rate of refrigerators
- 88 Downloads
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 ClassificationF23 R11 R30
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 was provided by Japan Society for the Promotion of Science (Grant No. 24330073).
- Access Asia (2009) Frozen food in China 2009: a market analysisGoogle Scholar
- Akune Y, Tokunaga S (2003) Market access and supplier access of food industry in East Asia: usage of Redding and Venables. Rural economics and sociology: memories of the Institute of Agriculture and Forestry, University of Tsukuba, vol 28, pp 1–25 (in Japanese) Google Scholar
- Euromonitor International (each year) World Consumer Lifestyles DatabookGoogle Scholar
- Fujita M, Krugman P, Venables AJ (1999) The spatial economy: cities, regions, and international trade. MIT Press, CambridgeGoogle Scholar
- Greene WH (2008) Econometric analysis, 6th edn. Pearson, Upper Saddle River, pp 841–843Google Scholar
- Horaguchi H (1992) Foreign direct investment of Japanese firms: investment and disinvestment in Asia. University of Tokyo Press, Tokyo (in Japanese) Google Scholar
- Ikegawa M, Akune Y, Tokunaga S (2013) NEG model analysis for location choice of Japanese frozen food industry in East Asia: a case of final goods. In: Journal of Rural Economics. Special Issue, Proceedings of annual conference of the Agricultural Economics Society of Japan, pp 372–378 (in Japanese) Google Scholar
- Ikegawa M, Akune Y, Tokunaga S (2014a) Domestic and foreign supplier access and location choice in the Japanese frozen food industry in East Asia: before and after the Asian currency crisis. In: Journal of Rural Economics. Special Issue. Proceedings of annual conference of the Agricultural Economics Society of Japan, pp 159–164 (in Japanese) Google Scholar
- Kawatsu N (2012) Consumers and domestic market in ASEAN. Knowl Creat Integr 2012:56–73 (in Japanese) Google Scholar
- McFadden D (1974) Conditional logit analysis of qualitative choice behavior. In: Frontiers in econometrics, pp 105–142Google Scholar
- Mizuho Research Center (2010) Consumption and domestic market in ASEAN: popularization of consumer electronics. Mizuho Report, June 9, 2010 (in Japanese) Google Scholar
- Nihon Keizai Shinbun syuppan sya, Nikkei Share Investigation 2014, 2014 (in Japanese) Google Scholar
- Nihon Syokuryou Shinbun sya, Syokuhin Sangyo Jiten, 2008 (in Japanese) Google Scholar
- Ruan W (2002) Globalization of food market and industry in China: increasing FDI. Nourin Kinyuu 55(5):21–37 (in Japanese) Google Scholar
- Searates, Transit time/distances calculators http://www.searates.com/reference/portdistance/
- Takahashi D (2011) Trend of foreign direct investment and disinvestment by the Japanese food industry. In: Journal of Rural Economics. Special Issue. Proceedings of annual conference of the Agricultural Economics Society of Japan, pp 134–141 (in Japanese) Google Scholar
- Tokunaga S, Ishii R (2000) An empirical analysis of agglomeration effects and location choice for Japanese electronics firms in East Asia. Regional cohesion and competition in the age of globalization, pp 127–143Google Scholar
- Tokunaga S, Akune Y, Ikegawa M, Okiyama M (2015) An empirical analysis of Japanese industrial agglomeration and factors of supply chain internationalization in East Asia: a case of Japanese food, electronics, and automobile firms. RIETI-PDP (in Japanese) Google Scholar