Tertiary Industrialization and Structural Change of the Osaka Metropolitan Area

Abstract

Recently, the metropolitan areas and their central cities are leading the service economy. The tertial industry is evident in Japanease cities. There are many studies related to the structural change of the metropolitan areas in Japan. But little attention has been given to the direct relationship between the tertiary industrialization and the structural change of the metropolitan areas. The purpose of this paper is to explain that relationship in the Osaka metropolitan area in 1975, 1985 and 1988. Industrial sectors selected for this study as follows; manufacture, constructing, transportation, finance, real estate, sales, services, information, and households (residential population). The results of this analysis are as follows:In particular, financial, sevices and information sectors in the tertiary economy lead to a change in the input-output structure (See tabs. 2-3). MDS shows that there are strong relationships between the financial sector and the other eight sectors (See figs. 5-6). Also we could identify the three different groups; (1) manufacture, transportation and construction, (2) services, sales, real estate, information, and households; and (3) finance (See figs. 2-4).MDS of spatial communality shows the change into the next three different groups: (1) manufacturing, transportation and construction; (2) finance, services, sales, real estate and information; and (3) households. The four sectors of services, sales, real estate and information in the second group are increasing in locational similarity to the financial sector (See fig. 9).Three different groups in economic structure are explained by similarity or dissimilarity in their inter-sectoral locational relationships. That is the first group in economic structure has a locational dissimilarity in comparison with other sectors. The second group excluding households and the third group in economic structure have locational similarity. The difference between the second group and the third one is caused by tertiary industrialization, that is, the four sectors of services, sales, real estate and information are increasing their locational similarity to the financial sector from the spatial point of view.Also, the first group in economic structure has a mixture of spatial inter-city input-output linkages in the Osaka metropolitan area. Financial, infomation, real estate, services and sales sectors have the possibility of spatial intra-city input-output linkages (See tabs. 6-7). The former (latter) case is because of the characteristic of locational dissimilarity (similarity) and strong economic linkages. Input-output structure of finance, infomation, realestate, services and sales sectors has equally developed in each city from 1975 to 1988. The balance of industrial development into each city to enhance its independent trends may have originated from the input-output structure of these five sectors.