An Interregional Industrial linkage Analysis in Japan, Using a 47-Region Interregional Input-Output Table

Abstract

The construction of several regional input-output tables in Japan has enabled us to employ them for regional economic analysis in various regions. The most important of these tables is the nine-region interregional input-output table, which covers the whole of Japan by MITI, and is which is the first of its kind in Japan. However, the regional divisions in this table do not correspond with those of the local government. Therefore, researchers have rarely used this table. Most regional input-output tables, excluding this, are intraregional, rather than interregional, input-output tables. Therefore, the analysis using these tables does not take interregional interdependence into consideration.In this study, we attempted to compile a 47-region interregional input-output table at the prefecture level, covering all of Japan. The hybrid approach of constructing regional input-output tables was adopted in this 47-region interregional input-output study. First, all intraregional input-output tables were prepared at the prefecture level. We used intraregional input-output tables of all prefectures in Japan from 1990 onwards. The second step was to estimate the interregional trade coefficients because this is a very important step in the construction of interregional input-output tables. In this study, we propose a method for the estimation of interregional trade using a distribution census and some data. In addition, the interregional trade coefficients were adjusted using a new iterative method to ensure that the sum total of the total output of 47 regions would match the total output of Japan. Finally, a 47-region interregional input-output table was compiled using tables of all 47 prefectures and the interregional trade coefficients.In this paper, we show the characteristic features of a 47-region interregional input-output table. Further, this paper presents a regional economic analysis using the 47-region interregional input-output table. We analyzed regional relations among all prefectures by measuring interregional input coefficients and using the Leontief inverse matrix. As a result, we found that most industries in local prefectures have economic linkages with services in Tokyo. In addition, we estimated the effects of an increase in the demand for automobiles in the Aichi prefecture on each prefectural economy in Japan. We could observe the relation between the transportation networks and interregional economic linkage at prefectural regional level.