Since the island is physically separated from other regions, the economy is relatively independent, and the primary industry and its processing industry are major industries in many islands, so local resources that can be used per person are relatively abundant. On the other hand, most of the energy resources are imported from outside the island, and the import and export of products requires high transportation costs. It is considered that island has an advantage in creation of economic circulation by use of local resources. In this paper, we will consider the economic characteristics of the island regions and the effects of constructing a regional economic circulation system, targeting Sado Island and Tanegashima, which have large areas, populations, and economic scales among the islands of Japan.
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