Abstract

In this research, I estimate regional production functions for Japanese manufacturing industry for three time points of 1988, 1991 and 1994 using 47 prefectural data on crosssectional bases to examine production structures. In addition, regional technological levels are estimated and the factors of technology are analyzed.As a result, I find that the rate of the production gap being related to strengthening of the market mechanism, the rate of the pavement and the college entrance rate have the positive effects on the regional technology. Further, the regional classifications in terms of manufacturing production structures are performed through the techniques of Principal Component Analysis.Thus I have proposed the techniques to evaluate the production side of the manufacturing industry empirically using regional production functions as a basis of regional policies.

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