Evolution of the Companies in Industrial Estates and the Response of the Surrounding Rural Communities

Abstract

This study attempts to make a dynamic and empirical analysis of the evolution of the companies in industrial estates and of the surrounding rural communities through detailed interviews at the factories and with local people. The results are summarized as follows:(1) Through the analyses of Kandatsu district, evolution of the companies in industrial estates and response of local communities show two distinct periods: a former period (approximately before 1973) and a latter period (since 1974).(2) Evolution of the companies in industrial estates and response of local communities are interrelated. In the former period, in general, local communities retained their rural character. The influence of industry on land use and labor was limited. In the latter period, the influence became predominant.(3) Evolution of the companies in industrial estates and response of local communities largely depended upon the character of the industrial estate. Districts with multiple industrial estates offered a variety of labor markets. The influence on the local labor was strong. The industry demanded a large amount of land for a variety of purposes. In other words, industrial estates with multiple kinds of industry have drastically changed the rural area.(4) These regional characteristics were determined not only by such external factors as capital, size, and kind of the industry, but also by such regional factors as land condition, land use, land ownership, personality of local communities, transportation, and labor conditions. These regional factors began manifesting their influence on the evolution of the companies in industrial estates especially a decade after their initial establishment.