Toshihiro Okubo, Eiichi Tomiura, 02 January 2017

The core-periphery gap raises important questions for economic geography. Using Japanese data, this column examines firms’ decision to separate non-production activities from production plant facilities. Large plants, plants which intensively purchase materials, and plants located further from the core are more likely to have separate corporate headquarters, though the magnitude of this effect is small. Small-sized plants appear to be especially vulnerable to remoteness from urban cores.

Masayuki Morikawa, 19 June 2014

Headquarters play important strategic roles in modern companies, but downsizing of headquarters is often advocated as a cost-cutting measure. This column presents evidence from Japanese firm-level data that the size of headquarters is positively associated with firms’ overall productivity. Moreover, the benefits of ICT are greater for companies with relatively large headquarters. Downsizing headquarters to cut costs may thus be harmful for long-term company performance.

Masayuki Morikawa, 26 August 2014

Headquarters play important strategic roles in modern companies, but downsizing of headquarters is often advocated as a cost-cutting measure. This column presents evidence from Japanese firm-level data that headquarters size is positively associated with firms’ overall productivity. Moreover, the benefits of ICT are greater for companies with relatively large headquarters. Downsizing headquarters to cut costs may thus be harmful for long-term company performance.

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