Abstract
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.
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Akita, T. (1999). The Role of the Kanto Region in the Growth of Japanese Regional Economies 1965–1985: An Extended Growth-Factor Decomposition Analysis. In: Hewings, G.J.D., Sonis, M., Madden, M., Kimura, Y. (eds) Understanding and Interpreting Economic Structure. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-03947-2_8
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