9.6 Stractural Change of regional industries

  In this section, we consider changes in the industrial structure of each prefecture as seen from the numbers of workers.
  Here, we use the data for the 15 year period from 1980 to 1994 for the number of workers in the manufacturing industries of each prefecture (from among 23 industrial categories) as represented by the industry edition of the industrial statistical tables, (compiled by the Ministry of International Trade and Industry), and analyze them according to the factor below.
  (Note: the source of the method of calculation, chart and graphs below is the National Institute of Science and Technology Policy's Study on Spatial Mobility of Manufacturing Industry and Structural Change of Regional Industries in Japan, 1999 (NISTEP Report No. 60).)

  

  Air: Type r of industry condition variable
  by prefecture i (number of workers)
  Ai: All type of industry condition by
  prefecture i (number of workers)
  Anr: Type r of industry condition variable
  in nationally. (number of workers)
  An: All type of industry condition variable in nationally (number of workers)
  ICRIS (Index for Conversion of Regional Industrial Structure) indicates the extent of the deviation between the distribution of the industry condition variable (number of workers) nationally and in prefecture i, for manufacturing industries. That is, ICRIS represents the characteristics of the industrial structure of each prefecture relative to the industrial structure of the whole of Japan.
  The ICRIS values have been calculated for each prefecture according to Equation 9-6-1. The smaller the value, the closer the component ratio of a prefecture's industrial structure - that is, its industry condition variable (number of workers) - is to the national average. The smallest value of 0 means that the industrial structure of a particular prefecture is consistent with the national average. The larger the ICRIS value, the greater the extent of deviation between the national average and the industrial structure of a given prefecture. Thus, if a prefecture has only one type of industry, this value will be close to one.
  The vertical axis in Figure 9-6-1 represents the industry condition variable, while the horizontal axis represents the ICRIS value. These values are plotted for each year showing a time-series of movements that indicate the changes in the industrial structure of each prefecture.

  Figure 9-6-1

  

  Figure 9-6-1 (A) indicates that the industrial structure of a given prefecture tends toward the average, with a rising industry condition variable, which suggests development and growth within the prefecture due to new industries entering or being lured in.
  (B) indicates that the industrial structure of a given prefecture tends toward a dominant industry and growth. This means that the existing industries, with their high component ratios, are experiencing further growth, such that their component ratios will rise even further.
  (C) indicates a downward tendency in the industry condition variable of a given prefecture, while the industrial structure is moving toward the average. The decrease in the component ratios of existing industries means that the component ratio for other industries is relatively high. As a result, the industrial structure is changing and moving toward the average
of this country.
  (D) is the opposite to this, and indicates that industries with a low component ratio in a given prefecture will decline further, while the component ratios of the industry condition variable for the existing industries will tend to become relatively high, thus leading to a decline in the industry condition variable.
  (E) indicates a rising industry condition variable with a static industrial structure for a given prefecture, which means that all industries are growing evenly as the industry condition variable rises.
  (F) is the converse to (E), and indicates the situation in which the industrial structure is unchanged while the industry condition variable falls.
  (G) represents the case in which the existing industries decline at the same time new industries enter or are lured in. Although the industry condition variable for a particular prefecture does not fluctuate, the industry component ratio moves towards the average of this country as the industrial structure changes.
  (H) represents the situation in which those industries with large component ratios increase further, at the same time as those industries with small component ratios fall. Thus, although the industry condition variable for a particular prefecture does not fluctuate, its industrial structure tends toward dominant industries.
  Those prefectures with special characteristics with regard to the industrial structures described above are shown below.
  Tables and graphs showing the time series for the number of workers and the ICRIS values for all 47 prefectures can be found in the appendix to this chapter (see Table 9-6-1 and Figures 9-6-8-1 to 9-6-8-47).


(1) Regional Growth Due To Entry or Attraction of New Industries
  As an example of this type of industrial structure, we will use Saga Prefecture. As shown in Figure 9-6-2, the number of workers in this prefecture grew remarkably until around 1991, while the ICRIS values consistently fell. This indicates that as the composition of the types of industries diversified, the industrial scale, represented by the number of workers, expanded as a whole.
  For a prefecture which displays this kind of an increasing industry condition variable and declining ICRIS values, we examine Shizuoka Prefecture below and so on.

   Figure 9-6-2 Variance of number of workers by Saga prefecture

  In the case of Shizuoka, the growth of the metalworking, electrical equipment or precision equipment industries replaced the traditional pulp and paper industry; thus, it seems that the change in the industrial structure was due more to the rise and decline of existing industries than to the entry of new industry (Figure 9-6-3).

   Figure 9-6-3 Variance of number of workers by Sizuoka prefecture


(2) Regions with Dominant Industries or New Production Centers
  Aichi Prefecture is discussed as a region typical of this type of structure. The dominant industry in Aichi Prefecture is the transportation equipment manufacturing industry, which is at the center of the automobile industry. The number of workers in this industry has been maintained at a component ratio of over 20% in the prefecture over a 15 year period (Figure 9-6-4).

  Figure 9-6-4 Variance of number of workers by Aichi prefecture

  Also, in Okinawa Prefecture, as the number of workers in the dominant industries of food processing and ceramics increased, the component ratios increased (Figure 9-6-5).

   Figure 9-6-5 Variance of number of workers by Okinawa prefecture

  The growth in the number of workers in both prefectures indicates a situation in which the industrial base was strengthened due to a further strengthening of the traditional dominant industries.


(3) Regions with Dominant Industries or Declining Production Centers
  Kanagawa Prefecture is discussed as an example of this type of region. At one time, the electrical equipment and transportation equipment industries accounted for over 40% of the total number of workers in the prefecture. However, due to an increase in the number of workers in other industries in the 1980s, the ratio of workers in these two industries fell (i.e. the ICRIS values fell). After 1991, the number of workers in Kanagawa suddenly declined, largely due to a decline in the number of workers in the electrical equipment and transportation equipment industries. The decline in both the ICRIS values and the number of workers after 1991 in the graph for Kanagawa is a graphical representation of the decline of both industries in the prefecture.

   Figure 9-6-6 Variance of number of workers by Kanagawa prefecture

(4) Declines in Dominant Industries and New Production Centers in a Region
  In this example, we look at the number of workers in Tokyo. From around 1985, there was a significant decline in the number of workers in the electrical equipment and general machinery manufacturing industries, which were the main industries up to that time in Tokyo. However, the extent of the decline in the main industry of publishing and printing was small, leading to a rise in the industry's position (Figure 9-6-7).

   Figure 9-6-7 Variance of number of workers by Tokyo

  Although the number of workers have been assesses in this instance, by carrying out an assessment of other industry condition variables (number of business locations, volume of products shipped, amount of value added production) there are also prefectures for which differences in the characteristics of the industrial structure are becoming evident.

 

 

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Chapter 9 Yoichi Arafune