After the Government of China adopted the opening policy in 1978, the economic ties with outer world increased greatly. In 1979-1994, from Japan to China, visitors increased ten times, export increased three times, and direct investment increased from 33 million dollars to 1 billion dollars. In the total trade of Kinki region, the export and import with China occupied 7.8 and 20.1 per cent respectively in 1995. The rapid increases of three flows (persons, trade and investment) and their impacts will be important key factors for the future development of related areas. This paper tried to describe the mutual enforcement of these three flows between two areas (Shanghai-Chang-Jiang-River-Area and Kobe-Kansai Area), and their long-term impacts on economic development of each area. We constructed an econometric model of 17 equations based on the time-series data of 1981-1992. The major endogenous variables are three kinds of flows between two areas, and income potentials of two areas. We applied this model to simulations in which we assumed the increase of transport infrastructure capital (0.5 per cent at Japan and 7.5-10.0 per cent in China), and calculated their effects in 10 years. The income potential increased by 2.1-2.5 per cent in Japanese side, and 5.4-7.5 per cent in Chinese side. Thus we confirmed that the transport investment in both sides are effective to promote the mutual flows between two areas, and to further economic development.

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Due to the accelerated national economic development in China, demand for energy is still continuously increasing. The economy of Jiangsu, the province at the center of the eastern area along the coast of China, is growing at a higher rate than those of other provinces. In 1992, the total gross product of industrial and agricultural sectors in the province is about 10% share of that of the country. The energy resources in the province are, however, significantly scarce. The outcome of coal, oil and electricity industries is only 3.2% of the whole industrial outcome in the province. Coal occupies 80% share of the primary energy in this province, while 70% of the primary energy is imported from other provinces. Because of a rapid expansion of the economy and poor transportation services, the shortage of coal has been a long-term and serious issue. In order to enhance the effectiveness of distribution of coal, this paper presents two models about a comprehensive evaluation of coal distribution and optimum distribution in view of the economic, social, environmental and other aspects. Applying the current data, the actual distribution of coal in Jiangsu province is evaluated by these models.
Taking six indices, including economic outcome, resource economization, environmental conservation, employment, technological progress, and central government's aid (for considering the policy for industries in the province), a function is introduced to a comprehensive evaluation model to reflect the characteristics of indices that evaluate the effectiveness of the distribution of the coal. Applying available data, this study analyzes 12 industrial sectors in Jiangsu province and obtains a priority order of coal distribution among sectors. Moreover, selecting five major coal consuming sectors, and given a total supply of coal, the most effective distribution of coal for these sectors is calculated by an optimal distribution model (a static planning model).
Comparing the economic outcome of optimal distribution with the real one in the province, the increase in the economic effectiveness of the optimal distribution can be concluded as 54, 200RMB¥ per 10, 000 tons of coal and 1, 849RMB¥ per 10, 000 KWHs of electricity.

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The purpose of this research is to construct an econometric model that can comprehend the social-economic effects of the Kita-Kanto Expressway and an evaluation of regional development plan by running simulation with the help of this model.
Tochigi prefecture consists of twelve cities and thirty-seven towns. We diveided the area into thirteen districts. This model contains thirteen sub-models of each district. Each sub-model is composed of five blocking parts (population, employment, production, citizens'income and public finance). Nineteen variables are endogenous (16 estimated and 3 definitional equations) and twenty-seven variables are exogenous. Thirteen exogenous variables were the results of the North-Kanto Area (NKA) model. Those were used as the control total values. The NKA model is an inter-regional model of Tochigi, Gunma and Ibaraki prefectures. The estimation period was sixteen fiscal years from 1976 to 1991. The estimation methods were OLS.
The aim of this analysis is to make clear the influence to regional economy by the change of transportation time, investment and land planning. We run several simulations for 1976-1991 by changing the three exogenous variables with the NKA model.

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Paul Krugman attracted attention when he said that East Asian growth, unaccompanied by technological innovation, would soon come to a dead end as was the case with the USSR. The purpose of this paper is, in an attempt to probe into what has made Vietnamese economic success possible, to analyze the production structure and the input factor in Vietnam by growth accounting method, production function analysis and labor mobility index method. The results are as follows.
Firstly, the T. F. P. improves a little in the primary and in the secondary industry, but not in the tertiary industry. The improvement starts in the primary industry in the early 1980's, mainly because the period marks the beginning of an economic reformation which helps bring about free disposal of crops and expansion of hyper-productivity rice. In the secondary industry, however, the improvement does not begin to occur until in the nineties, when the government's economic open policy makes the domestic market accessible to foreign investors.
Secondly, land productivity changes for the better in the primary industry, although labor productivity and capital productivity remain unchanged. This is due to land restriction measures taken in agriculture. In the secondary industry, on the other hand, labor productivity goes upgrade while capital productivity declines. This is brought about by labor saving innovation resulting from new technologies from abroad and by regal restrictions arising from the minimum wage system.
Thirdly, the changes in production patterns prompt the working force to move from farm villages to industrial cities. In the latter half of the eighties, they move mainly to the secondary and the tertiary industry. But in the nineties, this flow declines because of fewer job opportunities in the secondary industry. Superfluous job-hunters try to find their way into the informal sector.

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Recent development in information technology motivates the study of its effects on the economy. In this paper we study the contribution of information capital intensity to productivity growth by using an extended productivity function. Shanghai city in China is taken as a case of developing region and compared with the case of Japan which is a well information-oriented country. We find that the contributions of information capital to productivity growth are 11% and 30%, respectively, for Shanghai and Japan. Intensification of information capital has a very strong force toward productivity growth. Therefore for a developing area like Shanghai, it is important to refer to Japan's experience and to pay attention to intensification of information capital for advancing the productivity.

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The purpose of this paper is to investigate the effect of the development of telework. Due to the development of telecommunication technology, such as internet, facsimile, portable phone, etc., the necessity to commute to offices at CBD will decrease.
Then people can live in the distant area. They have to commute to CBD for some times per unit period, but they might not trip there to buy commodities sold there. This is because we assume that the goods sold at CBD are relatively luxury goods and people can buy necessities at their residential area. The popularization of telework causes not only the expansion of the residential area, but the change in the size of the market area of the stores at CBD, and the level of their profits, also the level of the profit of the transport providers.
In order to commute to the offices at CBD, or to trip to the stores to buy commodities, the residents have to buy the services of the transport providers. The demand for the service is determined proportionally to that for the commodities sold at CBD, and the number of commuting to the offices. The demand for the goods at CBD is determined by the c.i.f. price. Given this demand function and the unit price of transportation, the CBD's stores determine their price so as to maximize their profit. Similarly, the transportation providers determine the unit price of transportation, given the commodity price so as to maximize their profit. The Nash game is played by those two economic units and the equilibrium prices are determined.
The results which we have derived are as follows: When a certain condition is satisfied, as telework diffuses, the expansion of the residential area exceeds that of the market area, and the location will appear, where the residents commute to CBD but not trip to buy goods there. When that condition is not satisfied, the residential area always coincides with the market area. The condition is on the expenditure ratio for the land rent at the residential border to the total income. If this ratio is small, the former case will be realized, otherwise, the latter case will be realized. As telework diffuses, the price of the commodity decreases, while the transportation rate is fixed. The profits of the commodity seller as well as that of the transport provider increase.

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This paper models the distribution system as vertically related activities under spatial successive oligopoly.
The retail market is characterized by a uniform and discrete distribution of intralocal concentrations of retailers along a linear market. Manufacturers are considered as wholesalers located arbitrarily along the linear (or over a plain) market and they can make sales to all local market points. The retailers are subject to competition at its own site as well as at a location some distance away while wholesalers are spatial Cournot oligopolists.
Profit maximization condition for the upstreamers is based on the profit maximizing equilibrium conditions for the downstreamers since the marginal revenue function of the ratailer constitutes the average revenue function of the wholesaler. Therefore, resulting equilibrium conditions for the two vertically related markets determine the equilibrium output and retail price. Spatial competition in the retail market causes a change in equilibrium conditions for the downstreamers, which in turn induces a change in equilibrium conditions for the upstreamers while spatial competition and cost coditions in the wholesale market affect the latter equilibrium conditions directly.
If the basic demands yield monotonically increasing (decreasing) elasticities with distance, smaller market area yields lesser (greater) elasticity of aggregate demand. Despite the same curvature of the basic demand, elasticity of the first derivative of aggregate demand does not necessarily decrease (increase) as market size decreases. Therefore, greater interlocal competition in the retail market may raise or lower the retail price and consumer surplus per unit area depending on the directions of changes in two types of elasticities. In contrast, greater intralocal competition yields lower retail price and greater consumer surplus per unit area due to the second curvature condition. Likewise, factors such as greater spatial competition in the wholesale market, lower marginal cost of production, lower transportation cost per unit of quantity and smaller total market area tend to lower retail price, thereby increasing consumer surplus per unit area.
We expand Greenhut-Ohta [5] model to ponder some cases of vertical integration by spatial successive oligopolists when one upstreamer integrates with one or more downstreamers and moreover integrated enterprises can continue to offer independent downstreamers wholesale goods. We demonstrate that industry output is greater while both retail price and wholesale price are lower when partial vertical integration is contemplated than when independent retailers are allowed to purchase from independent manufacturers only.

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The objective of this paper is to summarize an affective measure for industrial water pollution issues in the Philippines on the Model Reference Adaptive Theory.
Nowadays, a developing country such as Asian countries are success in modernization and industrialization. However, there are some seriousness of industrial pollution issues, such as water contamination. We can find some difficulty investment for environmental management in developing countries, because those countries prefer to enjoy there profit.
We summarize a current state in water pollution problems in the Philippines as example of the developing countries.
They believe such investment for environment is not be able to give any profit. We have to realize some environmental damage will bring a some economic restriction. We have an experience on industrial pollution in 1960's and '70's in Japan. We concur the industrial pollution in not only own measure in industrial sector but also some industrial and environmental policy. From our experience in the industrial pollution issues, legislative functions and some investment are required.
The Model Reference Adaptive Theory can provide most useful information from experiences as some models, as well as the theories assist to adapt to the developing countries to solve an industrial pollution issue.
We would like to suggest that to summarize that re-use of industrial water is secure not only to minimize a discharge a waster water but also to minimize a pollution control cost. It is true that systematic analysis which combined with policy-guided and investment of industries in Japanese experience on the industrial pollution measures.
1) input unit of resources in changing industrial structure and changing of environmental quality
2) strengthening on environmental regulation due to their aggravation on environmental quality and investment and some affection on economy
3) investment for R&D in industry and their effect
4) some incentives for environmental conservation and their effect
5) creation of environmental business from aggravation of environmental quality and strengthening on environmental regulation
We also would like to suggest to set those comprehensive programs from Japanese experience on measure on water pollution.
1) Comprehensive program for water usage
2) Monitoring plan for water quality
3) Comprehensive master plan for environmental management

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In December 1996, the Committee for the Promotion of Decentralization, Prime Minister's Office, released a report titled “The Creation of Decentralized Society” in which entire abolishment of the delegation system and thorough review of the required controls in a local autonomy are taken up as a pivotal problem. In the event of the said project being realized, it is expected that the competence of the local government will be strikingly enhanced and an efficient renovation will be promoted in the field of the construction of the administrative system and activized placement of the personnel.
In this study, we have explained the personnel placement structure, based on the questionnaire conducted by Sanno College, by the staff member's number in the autonomous systems at present.
The results of the analysis are as follows: 1) The number of personnel of each municipalities depends on the population scale. 2) Almost none of correlation is noted between the number of the sector-wise personnel and the local index data which were collected with the premise that the contents and scale of the sector-wise duty would greatly influence the number of the personnel.
Since now on, human resource control based on the review of the supply form of the administrative service such as the reshuffling of the business, the reduction and/or the out-sourcing of the jobs with low necessary, and so on will be required.

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The developing of the becoming information-oriented of the recent society is based and the administrative office works in each administrative systems are becoming information-oriented gradually. To the primacy, the contents are the exhibition of the information which the administrative systems have. The 2nd is the building of the mutual circulation system of the information among the administrative systems. As the example, an information network at the cultural halls was built.
This network uses the network of PC-VAN. Then, the Agency for Cultural Affairs, the local government, the Whole Country Culture Facility Conference, the cultural halls and the art groups join the network. On the network, through the computer, communications such as the art activities are freauent.
At present, a lot of users at the cultural hall demand a work with high quality. However, at the cultural halls, they aren't providing the users works with high quality. This reason depends on the plan ability of the staffs at the cultural hall, too, but that information about the works and performance information aren't collected, too, is a big reason. The users look for the mainly in the theirs own plan businesses at the cultural halls which introduced the fine desire of them. When thinking from the thing, to make a network among the cultural halls will be evaluated. At present, mainly in the cultural hall in the district, equal to or more than 2/3 isn't made a network.
With to make cultural halls a network, it will be that the opportunity for performance with the cheap and high quality to be appreciated by the habitant increases. This is the first step to the opened art market. In the future, it wants to expect of the effort to the network of the agency for cultural affairs, the art groups and the cultural hall staffs.

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Since 1975, many Japanes manufacturing factories have moved their locations from the agglomerated areas in the metropolitan cities to local areas. This will be due to the fact that enterprises try to increase earnings or save production and management costs by moving treir locations, rather than the effect of the introduction of the regulations against the location of manufacturing industry in metropolitan areas.
This paper explored the factors that motivated the moves of the locations of the manufacturing industries in the metropolitan area of Tokyo by the analysis of the relations between the time of move and the change of the production and management costs based on the data of “The Average Cost of Medium and Small Enterprises” published by the Smaller Enterprise Agency, MITI. The period of the study was 1960-1993.
It is concluded that the most probably the main factor was the pressure of high wages in the area in the case of the particular example. It is hoped that this type of analysis will be pursued further to provide a reliable basis for proper planning of the development of metropolitan regions. In this connection it is also very much hoped that this will stimulate further improvement of related statistics.

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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.

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There is a paradox for Okinawa. The per-capita nominal income in Okinawa is lower than the one in Tokyo. But migrants from Okinawa to Tokyo in many occasions come back to Okinawa. From economic poin-of-view, this implies that although per-capita nominal income is lower in Okinawa, per-capita real income for the residents is higher in Okinawa. Such a real income reversal can only occur based on special deflator, which creates a positive difference between real income in Okinawa and of Tokyo. There is a big nominal income transfer to Okinawa. The big fiscal transfer and the existence of such a rent might be two major reasons why the people of Okinawa stays in spite of low per-capita productive income. In this paper, I try to explain the existence of Rent based on three hypotheses. (1) The price difference, (2) The meaning of the cooperation life which was thought of from Sunk Cost and (3) The consideration to the character of the prefecture people. After the theoretical discussion, I try to measure the size of Rent based on the rate of social change equation. The results of estimation shows that acutually the social change is 7.8 and 17.9 per cent smaller based on the fiscal transfer and the existence of Rent respectively.

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“New community” realized by the radical development of Internet in these several years is a restless society causing successive competitions. This “extra-competitive society” requires business people to watch the trend of consumers and their rivals, and to plan and manage business while always considering competition with their fellow business people in or out of their area. To analyze the competition, comparison is made on the 47 prefectures as the unit of economic regional competition. They are ranked with various indexes such as information-network related business. It can be understood from the result of comparison that new business and/or consumers of new information sevices tend to disperse regardless of location of service-provider or consumer, however, new-business concerned subcontractors will centralize in several big city areas.

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This synopsis represents an overview of some recent developments, explorations and extensions of input-output analysis undertaken during last decade in the Regional Economics Application Laboratory, University of Illinois at Urbana-Champaign, USA and the Bar-Ilan Laboratory of Environmental Information and Dynamics, Bar-Ilan University, Israel. This paper is the first of three review papers; in Part I, the focus will be on structure and structural changes in input-output systems and the following issues will be considered:
I. Temporal multipliers, temporal increment and temporal Leontief inverse: fields of influence of changes.
II. Economic Hierarchical Landscapes of backward and forward linkages: Key Sector Analysis, fields of influence and Multiplier Product Matrix.
III. Economic structural changes in the input-output systems: Barycentric Calculus of triple decompositions of gross output changes.
IV. Structural Q-analysis of the Leontief inverse.
In Parts II and III, attention will be directed to multiregional input-output analysis and the transition from comparative statics to dynamics.

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