Abstract

Commercial clusters, especially shopping districts, have declined in recent years, with the worst decline occurring in the central urban areas at municipal hubs. This decline is due mainly to the movement of shopping centers from the city core to the suburbs, which has triggered an outflow of customers to those areas. This downturn has increased the number of vacant stores in the commercial districts, causing the buildings to lose their aesthetic appeal. A drop in sales can also be attributed to this decline in commercial accumulation and to a consumption shift.The study focused on the transportation infrastructure and dependence on automobiles as a major factor behind the shift in the consumption base in the suburbs. We also considered roads as part of the transport infrastructure. Roads likely promoted the consumption shift at the expense of existing commercial districts. The rate of automobile dependence in the surveyed Aichi Prefecture is high.The purpose of this paper is to estimate regional production functions for commerce by type of district as defined by location features. We estimated the production function for Aichi Prefecture as a case study. The results indicate that roads have had a negative effect on commercial production in the city.In conclusion, motorization has advanced in recent years. Therefore, road construction has progressed. Consequently, consumers relocating to the suburbs, adversely affecting commercial accumulation in the city. The negative fallout, in turn, affects the city as a whole. In particular, store revenues drop with falling commercial accumulation around a station.JEL Classification:C5, H1, L8, R1

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