The Role of the Kanto Region in the Growth of Japanese Regional Economies 1965–1985: An Extended Growth-Factor Decomposition Analysis
In an earlier paper, Akita (1994) developed an extended growth-factor decomposition method based on the two-region interregional input-output system presented by Isard (1951). The decomposition was an extension of the method based on a single-region or a national input-output System (see Akita, 1991; Akita, 1992; Chenery, 1980; Chenery et al., 1962; Chenery and Syrquin, 1979; Dervis et al., 1982; Fujita and James, 1987; Kubo et al., 1986; Lee and Schluter, 1993; Martin and Holland, 1992; Urata, 1987). The extended growth-factor decomposition formula measures the roles played by interindustry and interregional linkages in the growth of a regional economy and avoids some of the problems of shift-share analyses. This method can identify growth factors that originate outside a region as well as those that originate from within. Applying the method to the Japanese two-region interregional input-output tables between 1975 and 1985, it was shown that interregional interdependence had exerted notable effects on regional economic growth in Japan and that the regions were becoming more interdependent.
KeywordsFinal Demand Regional Economic Growth Kanto Region Export Expansion Interregional Interaction
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