Abstract
The aim of this study is to develop a dynamic model which can explain regional structural changes. The concept of market disequilibrium is introduced to formulate ongoing changes. New location or withdrawing of industrial activities can be explained as a reaction to commodity market disequilibrium, while inhabitants, migration is captured as a reaction to labor market disequilibrium. Empirical study on Konan-Region in Shiga Prefecture is accomplished using the regional disequilibrium simulation model. Effects of infrastructure development alternatives, such as road networks, industrial parks and infrastructure for daily life, are estimated by simulation experiments.
