Abstract
The purpose of this paper is to discuss the characteristics and problems of industrial development in East Asian areas in terms of changing industrial structures and locational environment.
Industries that lead national economies and possess comparative advantages have historically altered with the evolution of industrial structure. If leading industries in countries are different, the evolution of industrial structure in countries simultaneously may continue. If leading industries in countries are similar, however, the evolution of industrial structure cannot simultaneously progress. This process has a great influence on the characteristics of industrial development in East Asian areas.
The foreign siting of Japanese manufacturing corporations appears to be playing an important role in the current changing industrial structures in East Asian areas because the locational practice seems to develop a spatial division of labour on an international scale. The data on geographical distribution of sales and purchasing by affiliates of Japanese manufacturing corporations help us understand the spatial division of labour.
The problem of hollowing out of domestic industries can be understood by the worsening locational environment through the foreign siting of Japanese manufacturing corporations, although we should not generalize by claiming that the foreign siting causes the problem. We should examine the impact of the locational practice of Japanese manufacturing corporations on the locational environment.
It is necessary for sustainable development in East Asian areas to start an economic system reform from the viewpoint of the improvement of locational environment and international cooperation.
