Economic Region as the Space of Equilibrium

Abstract

Economic Region has the two important aspects as the space of location and that of market. In order to analyze economic region, the author thinks it necessary to unify these two aspects and to introduce the concept of space of equilibrium in the balance of supply and demand.For the purpose of studying the space of equilibium, Economic Base Theory has been used. But now the theory is criticized in some points. They are as follows;1) The method to calculate the basic activity is too much simple.2) Of the two activities, basic and non-basic, we can not conclude which activity is more important in the development of a region.3) Base-Ratio is changeable according as the time or space changes. For instance, if we treat the nodal point only, Base-Ratio will be high, but if we consider the total service area including the nodal point, it will be lower than in the fomer case.4) In the case of linkage industry, it is difficult to distinguish basic actvity from nonbasic one.5) As the regional multiplier, Basic-Ratio is too much simple. In order to plan the future developmant of a region, we must analyze the relationship between industries in detail.W. Isard and L. Moses presented better method than Economic Base Theory. That is Regional Input Output Analysis. In adoptation of this theory, however, we need exhaustive time and expence to collect the materials. For this reason, we can hardly adopt this theory in reality. The auther thinks it better to take more useful method of Regional Commodity Balances Table.In Japan, National Input Output Table is available. On the basis of the input coefficients of this table, the author calculated the commodity balances of sixteen prefectures in Chubu, Kinki, and Kyushu Districts, and tested the regional character of prefecture seen from the space of equilibium.Although there are many differences between prefectures in their extention industrial structure or productivity, some eighty per cent of the commodity flow in both supply and demand is completed inside of the prefecture itself. As the result obtained in this article, the auther concludes, profecture has its own substantial value as region, though contemporary prefecture is thought as only political unit.