ECONOMIC EFFECTS OF LOCAL CURRENCY “SARUBOBO COIN” ON TAKAYAMA CITY, GIFU PREFECTURE

Abstract

In recent years, cases of introducing local currency as part of regional revitalization measures have been increasing in Japan. The purpose is to circulate the money flowing out of the region within the region. However, the actual economic effect has not been quantitatively grasped. In this study, we try to evaluate economic effects on Takayama City of the local currency “Sarubobo Coin” used in the Hida region of Gifu Prefecture with the interregional input-output model developed by Ishikawa et al. As a result, when the current distribution amount of the local currency “Sarubobo Coin”, which is equivalent to 200 (million yen) is reflected, we estimated that the regional production value increases by 313 (million yen), of which the income increases by 108 (million yen), that is an economic effect of 1.6 times the circulation distribution amount of the local currency on Takayama City. When the regional consumption coefficient of all 64 sectors rises from the current 90% to 95%, we estimated that the regional production increases by 27,600 (million yen), of which the income increases by 10,201 (million yen), that is an economic effect equivalent to 4.4% of the current value of regional production on Takayama City.