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The Effect of Transportation System on the Economic Growth of the Japanese Economy 1965-2000: using nine region inter-regional IO model

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  • Tsubasa Shibata
  • Takashi Yano
  • Hiroyuki Kosaka

Abstract

Japan had experienced rapid economic growth since 1960. We can point out that the establishment of better and high-speed transportation was one of the crucial factors for the growth. Hence, this paper examines historically the impact of the high-speed transport infrastructure developments on Japan's economic growth by employing an inter-regional input-output model for Japanese economy covering nine regions. This model is based on the IO tables from 1965 to 2000 in constant prices (nine regions and eight sectors ) and determines sectoral output and sectoral price simultaneously. For this purpose, evaluation of transport development is quite important. This paper develops an index of transportation evaluation which focuses on the balance between the time-cost and the fare of any high speed transportation. Incorporating this index in the inter-regional input-output model, the paper analyzes the effects of transport infrastructure development. As a result, this paper found positive relationship between the Japan economic growth and the development of transport system (particularly highway system), and also found problems associated with economic disparities among regions: i.e., centralization (concentration of people and goods) and decentralization occurred in core and local regions, respectively.

Suggested Citation

  • Tsubasa Shibata & Takashi Yano & Hiroyuki Kosaka, 2011. "The Effect of Transportation System on the Economic Growth of the Japanese Economy 1965-2000: using nine region inter-regional IO model," ERSA conference papers ersa10p517, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa10p517
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    References listed on IDEAS

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    1. Tschangho John Kim & Heejoo Ham & David E. Boyce, 2002. "Economic impacts of transportation network changes: Implementation of a combined transportation network and input-output model," Economics of Governance, Springer, vol. 81(2), pages 223-246, April.
    2. Heejoo Ham & Tschangho John Kim & David E. Boyce, 2002. "Economic impacts of transportation network changes: Implementation of a combined transportation network and input-output model," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 223-246.
    3. Fumio OHTAKE, 2008. "Inequality in Japan," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(1), pages 87-109, June.
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