REGIONAL STUDIES AND POLICIES IN CONTRAST

Abstract

It is very interesting to note that theories and policies concering regional economy could be arranged in pairs and contrasted with each other even in dealing with the same and similar problems.Theories of regional economic growth, for example, could be classified into two categories: one may be called the sector theory, represented typically by the Colin Clark type of theory with regard to the structural change of an economy, which is more fitted to analyze internal growth sequences rather than to clarify external impetus affecting the development of a given region; the other may be called the export-base theory which emphasizes external relations of a regional economy which is supposed a fatal ground for existence of a region distinguished from the rest, and puts particular importance on export activities to have a multiplier effect.We can see a contrast between two theories: the former regards service activities as a “lead” item in the process of overall growth, while the latter put aside it and makes the growth owe primarily the export activities.In the field of regional policy, there could be recognized two standpoints in contrast: one is a viewpoint of production and the other a viewpoint of distribution or social welfare.In Japan at present, boosting economic growth is not always compatible with lessening regional differentials between economic level. In discussing such orthodox doctrines as the Lerner-Hickian condition of optimum welfare state (marginal rate of transformation being equal to marginal rate of substitution) policy for production and policy for better distribution of the outcome of production should be treated separately, lest unfruitful confusions arise in appraising achievements. We really hope to have a nicer device for attaining efficient production in company with socially desirable distribution of products.It may be partial to pass without mentioning many other examples which remain untouched in this paper.