Input-output Analysis on Effectiveness of Support for Devastated Area by East-Japan Earthquake through Consumption

Abstract

In this study, we evaluated the effects of final demand in each prefecture of Japan on production and gross value added in Iwate Prefecture, Miyagi Prefecture, and Fukushima Prefecture, which had been struck by the Great East Japan Earthquake, by the multiregional input-output (IO) analysis. Production in Tohoku 3 Prefecture is greatly influenced from the consumption in neighboring prefectures in Tohoku district. Demand for the tertiary industries in Tohoku 3 Prefecture and that for the manufacturing industries in other prefectures induce production in Tohoku 3 Prefecture. The results will be expected to help as useful information for effective implementation of the earthquake restoration through our commodity consumption.