Abstract
In this study we develop the evaluation method of social economic influences due to reduction of public investment. First of all the influences of reduction in all industrial sector were calculated by means of I-O analysis in Hokkaido. The simulation of possible measures to cover the reduction in terms of whole economics of Hokkaido. Moreover, we make sure the effects due to several improvements of construction industry. As a result. 1) the reduction of public investment makes a large influence to Hokkaido economics, 2) it is difficult for Hokkaido economics to improve its state for itself. and 3) we should consider the strategy of construction industry. Several strategies are simulated and some of them contribute to the prevention of reduction of public investment effectively.