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Japanese service sector multinationals and the hierarchy of Pacific Rim cities
Author(s) -
Edgington David W.,
Haga Hiro
Publication year - 1998
Publication title -
asia pacific viewpoint
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.571
H-Index - 38
eISSN - 1467-8373
pISSN - 1360-7456
DOI - 10.1111/1467-8373.00061
Subject(s) - tertiary sector of the economy , pacific rim , service (business) , hierarchy , foreign direct investment , geography , recession , china , economy , east asia , economic geography , business , economic growth , demographic economics , economics , market economy , archaeology , keynesian economics , macroeconomics
The explosive growth of Japanese service sector activities overseas since 1985 has had a significant impact on Pacific Rim cities. However, previous accounts of Japanese direct foreign investment in services have been constrained by official statistics which provide comparative information only at a national level. This paper uses establishment level data to assess changes in the spatial patterns of Japanese service firms among 35 cities as well as changes in the hierarchy of cities in the Pacific during the years 1985 to 1995. The period saw important changes in Japan’s economy such as the emergence of a ‘bubble economy’ up to 1990 and domestic recession after that. The results show the importance of Hong Kong, Singapore and Los Angeles as centres of Japanese service firms. However, the analysis indicates that a shift occurred in Japanese service sector focus over the study period, across the Pacific Rim from North America and Oceania to cities of the Asia‐Pacific region. Along with that shift the concentration of services in just a few cities has remained unchanged, even though some new cities have emerged in importance.