The Regional Economic and Fiscal Circulation in Forest and Lumber Industry: The Case Study of Nishiawakura Village, Okayama Prefecture

Abstract

  This paper criticizes the fact that the uniqueness of the local government as a public sector is not dealt with in the concept of regional economic circulation in previous studies. Therefore, this paper posted the recursive and continuous movement of money originating from local governments within the existing concept of regional economic circulation by the concept of “fiscal circulation.” As a result of the case analysis of Nishiawakura-village, Okayama Prefecture, the uniqueness of the recursive flow of money to the local government starting from fiscal expenditure was found in the regional economic circulation. This uniqueness was because of financial resources that change every year and the policy or structure made by the government.