The Analysis of the Head Office Service in Tokyo Metropolitan Economy

Abstract

As the indirect production activities by the head office in Tokyo occupy relatively high share in Japan's economy, it is important to analyze its supply (production) to understand the realities of Tokyo metropolitan economy.
According to the input-output table of inter-industrial relations of Tokyo as of 1990, we can find the followings regarding the head office production. Outputs by the head office in Tokyo accounts for some 50 per cent of them in Japan. The share of the head office service production demanded for each industry in Tokyo is nothing but 25 per cent and the rest is export.
Therefore, the head office service production in Tokyo is important and it is firmly related to another area in Japan.
The aim of this paper is to analyze the characteristic of the head office service by typing industries based on its supply (production) and demand under the present condition, which has not been studied. And the degree how large effect production cost by items has on head office service production will be indicated. We also examine the expansion of the head office service by formulating its production function regarding its type and industry.
Through the examination, the realities of the head office activities in Tokyo will be made clear. And it will be found that the trend for the future such as the de-industrialization as domestic industries and factories operating overseas.