Setting economic areas of Japan based on inter-firm networks

Abstract

The existing setting standards of economic areas are not valid for drawing economic sphere. This paper set economic areas of Japan based on inter-firm network data of trading and financing. The method used here is to set areas to meet some rate of self-sufficiency rate. Looking at the areas presented here, comparatively broader stretches of trading than financing and importance of borders of prefectures are revealed. These areas are evaluated from the viewpoint of economic sustainability. As a result of the analysis, it is concluded that areas based on networks of financing are best.