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Interregional Income Transfer and the Regional Employment Structure : Transfer Problem in Three-sector and Two-region Model

Research Project

Project/Area Number 05803004
Research Category

Grant-in-Aid for General Scientific Research (C)

Allocation TypeSingle-year Grants
Research Field 経済政策(含経済事情)
Research InstitutionNagoya University Graduate School of International Development

Principal Investigator

ARAYAMA Yuko  Nagoya University Graduate School of International Development, Associate Professor, 大学院・国際開発研究科, 助教授 (60191863)

Co-Investigator(Kenkyū-buntansha) TAKETOSHI Kazuki  Kyoto Prefectural University, Department of Agriculture, Lecturer, 農学部, 講師 (00242800)
TAKI Atuhiro  Toyama University, Department of Economics, Associate Professor, 経済学部, 助教授 (40216809)
Project Period (FY) 1993 – 1994
Project Status Completed (Fiscal Year 1994)
Budget Amount *help
¥1,800,000 (Direct Cost: ¥1,800,000)
Fiscal Year 1994: ¥600,000 (Direct Cost: ¥600,000)
Fiscal Year 1993: ¥1,200,000 (Direct Cost: ¥1,200,000)
KeywordsEconomic Development / Industrial Structure / Petty-Clark's Law / Labor Force / Transfer Problem / Reagion / Fiscal Polcies / Multi-Sector Multi-Reagion Model / トランスファー・プロブレム / 就業構造 / ペチィ=クラークの法則 / サービス業 / 労働の生産性 / トランスファー / 財政移転 / ヘクシャー=オリーン・モデル / 要素価格均等化定理 / 資本-労働比率
Research Abstract

A share of labor force engaged in service sector tends to increase as economy develops nation as a whole. Contrary to the well known Petty-Clark's Law, regional employment structure does not necessarily follow this pattern. Namely, it is often observed that a share of labor force engaged in service sector in economically backward regions exceeds that in advanced regions. Interregional income transfer under the limited tradability of goods produced by service sector among regions can possibly result in this "paradoxical" observation. Subsidy from advanced region to backward region through the central government could be a major channel for the income transfer. Furthermore, relatively low interregional variability in salary compared with that in labor productivity can imply possible interregional income transfer through private firms which develop multi-regional operation.
The most important implication derived from the above model is that income transfer from advanced regions to the back … More ward regions does not necessarily increase the level of income of backward regions at the expense of advanced regions. An increase in the effective demand through the transfer can improve national income level nation as a whole. Backward regions can contribute for accelerating economic development of a country and interregional income transfer can be used as an instrument for fiscal policies as far as marginal propensity to save and marginal propensity of "ship" goods to other region satisfy a certain conditions.
This research has developed a three-sector two-region model of a national income determination in order to explain the role of interregional transfer from an economically advanced region to a backward region for the observed changes in employment structure in a process of economic development. The empirical study strongly indicates that interregional income transfer has a tendency to increase the share of labor force engaged in service sector in Japan, China and US.Namely, the share of labor engaged in service sector in the backward region could have been stimulated relative to that in manufacturing sector through interregional transfer, as far as marginal propensity to save in the advanced region exceed that in the backward region and marginal propensity to import for service across the region is relatively small for both advanced and backward regions. Less

Report

(3 results)
  • 1994 Annual Research Report   Final Research Report Summary
  • 1993 Annual Research Report
  • Research Products

    (6 results)

All Other

All Publications (6 results)

  • [Publications] 荒山 裕行: "「三〓〓部〓〓地区〓的所得〓移--〓〓〓展期中国的所得〓就〓〓造的決定〓〓(上)」" 日本問題研究(河北大学日本研究所). 1. 43-49 (1995)

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      1994 Final Research Report Summary
  • [Publications] 荒山 裕行: "「三〓〓部〓〓地区〓的所得〓移--〓〓〓展期中国的所得〓就〓〓造的決定〓〓(下)」" 日本問題研究(河北大学日本研究所). 2. 23-25 (1995)

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      1994 Final Research Report Summary
  • [Publications] 荒山 裕行: "経済成長と地域-経済成長にみられる『定型的事実』" CRDRC(chubu Region Developme, +Research Center). 111. 18-31 (1995)

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      1994 Final Research Report Summary
  • [Publications] ARAYAMA,Yuko: "Inter-regional Income Transfer and Economic Development in China" Wivking Paper The Univ of Chicuge Dept of Fcew. 95-08. (1995)

    • Description
      「研究成果報告書概要(和文)」より
    • Related Report
      1994 Final Research Report Summary
  • [Publications] ARAYAMA,Yuko: "Inter-regional Income Transfer and Economic Development in China : Transfer Problem in Theree-sector Two-region Set-up" The University of Chicago, Office for Agricultural Economic research, Paper no.95 : 08. (1995)

    • Description
      「研究成果報告書概要(欧文)」より
    • Related Report
      1994 Final Research Report Summary
  • [Publications] 荒山裕行: "三産業部門両地区間的所得籍移-一経済発展期中国的所得与就業構造的決定-" 日本問題研究(中国河北大学). I期,II期(掲載予定). (1995)

    • Related Report
      1994 Annual Research Report

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Published: 1993-04-01   Modified: 2016-04-21  

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