Development of a Method for Analyzing the Regional Economic Cycle and Case Study ?a New Method for Analyzing Regional Economies in Regional Revitalization?

Kiyoshi Yamasaki, Akiho Sahara and Katsuya Yamada
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Kiyoshi Yamasaki: PhD. (Engineering) Value Management Institute, Inc. (Development Bank of Japan Group), Public Consulting Business Section 4, Corporate Officer/Chief Consultant
Akiho Sahara: M.A. (Economics) Value Management Institute, Inc. (Development Bank of Japan Group), Public Consulting Business Section 4, Consultant
Katsuya Yamada: M.A. (Engineering) Value Management Institute, Inc. (Development Bank of Japan Group), Public Consulting Business Section 4, Consultant

Public Policy Review, 2018, vol. 14, issue 1, 115-152

Abstract: Because of the slump in Japan fs regional economies - mainly in the regional area - the national and local governments are implementing regional revitalization and other regional economic regeneration policies. There are two types of factors behind the slump in Japan fs regional economies: external factors, including the contraction of public - works projects and overseas relocation of plants, and an internal factor of the outflow of income in the three phases of production, distribution, expenditure. In this study, to consider measures for regional economies that are fully based on these factors, a method for analyzing the regional economies f strengths, weaknesses, and inflows and outflows of income is proposed. This method of estimating income inflows and outflows is a new way of analyzing regional economies that estimates using data on dependents and territories. In this study, data on dependents and territories of municipalities throughout the country were created, and these data were used to conduct case - study analyses of three regions: Kanazawa City, Toyama region, Ishigaki City. The following points were understood from the results of this analysis. In tourist regions, even if a large amount of money from tourism consumption flows into the region, if a regional income cycle structure is not established, the money will not be returned to local residents. When only a few regional companies engage in regional economic activities and more companies from metropolitan - city capital do so, income earned during production leaks to the outside of the region. In regions where the manufacturing industry is highly productive, demand for capital investment is strong and capital investment flows into the region. Moreover, in the regional area, such regions are scattered where the percentage of fiscal transfers relative to income other than employer income is high and where income is secured by fiscal transfers. Income flows out of these regions during the expenditure and production phases, and, in this way, fiscal transfers do not contribute to the improvement of their own earning power in some regions.

Keywords: regional economies; regional revitalization; analysis of the regional economic cycle (search for similar items in EconPapers)
JEL-codes: H71 H72 R15 (search for similar items in EconPapers)
Date: 2018
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