Noriko Ishikawa (Graduate School of Science and Technology, Kobe University) Mototsugu Fukushige () (Graduate School of Economics, Osaka University)
Abstract
Japan consists of many small inhabited islands in addition to four main islands. We examine the impact of fiscal expenditure and the number of tourists on per capita taxable income in remote islands using panel data analysis. The results show that both fiscal expenditure and population size have significant positive impacts on per capita taxable income, whereas the number of tourists does not have statistically significant impact. They indicate that tourism development would not work as a substitute for financial support from the government. In other words, continuous financial support may be needed to maintain the islandsf economies.
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Publisher Info
Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number
06-21.
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