Industry structure and circular flow of economiy in Minamiosumi
富澤, 拓志 ,
トミザワ, ヒロシTomizawa, Hiroshi
38 , 2016-03-30 , 鹿児島国際大学
Minamiosumi is a small town with about 8,000 population of Kagoshima prefecture. This town isfamous for the highest ratio of aging population in Kagoshima and has been suffered from severedepopulation and the shrinking economy of the region. The town’s government has realized thevicious cycle between the depopulation and the stagnation of economy, thus they has made effortto promote the local industries and control the drain of younger generation from the town. Theyhave spent and invested over several billion dollars to town’s development, however, the trendstill remains unchanged.The problem of Minamiosumi can be considered as a typical example of rural economy in Japan.It has been pointed out for decades that in such area the scarcity of industry leads to the theexcessive openness of the economy and the lack of ‘unity’ of regional economy causes the rapidoutflow of its money. Thus even if the investment for the regional development would increasethe income of the residents, the money is consumed to import products from other regions, sohardly utilized to develop their own industries. From this point of view, not a few scholars haverepeatedly stressed the importance of the development policy based on its interindustry relations.However, few cities have made this kind of investigation because of insufficient statisticdata.One of the aims of this paper is to demonstrate a simple structural analysis of a local economy.Without the formal interindustry relationship analysis, one can find several, even if qualitative,not quantitative, important facts with basic popular statistics. Thus based on the analysis onseveral public statistics, this paper shows that in Minamiosumi, almost half the regional productcomes from the public payments, such as civil services of town’s government, public investmentand pension income of the residents, and that the interdependence or the division of labor amongthe industries within the town is quite weak, so that the economic effect of financial policy on theregional economy is very limited and the money spent in Minamiosumi would spill out of thetown quickly. Based on these findings, this paper emphasizes the importance of import substitutionpolicy, paying attention to the interregional division of labor, and discusses several developmentplans effective to this rural depopulating area.