In this paper we examine the key components of a relatively new trend in bio and life sciences—translational science—and ponder what is in it that may enhance application of regional science to real world problems. The key in "translational" is a new way of using scientific knowledge including input/output analysis in real world situations, i.e., translating the knowledge into practice so that it can be better understood, embraced and applied to create positive outcomes. We start with a question: what makes "translational" different from a traditional "applied research ?" Unlike a traditional application based on "we deliver—you decide," one of the core characteristics of translational science is achieving a better, more efficient communication between science and real world through an emphasis on two-way communication between science and community. We review similar approaches such as participatory action research (PAR), interactive research in social science (ISS) and the iterative research model—all of which argue for meaningful interactions between research scientists and practitioners. We than asked if there is a need for "translational" regional science and what will the overall improvements/benefits to regional science be. Building on a recently completed project we demonstrate "translation" of academic knowledge to community through community engagement. In particular, we focus on translating the outcomes of input/output modeling to practical application in regional economic development.
Using a model developed by Nelson & Winter (1982) and Zhang (2003) on evolution economics and agent-based simulation(ABS), this paper examines the effect of several factors on high-tech industrial development. Specifically, we focus on the behavior of firms measured by the percentage of R&D resources devoted to innovation or imitation, namely R&D tendency. We show that the variable R&D tendency has a significant effect on the speed of technological level growth. We come to some conclusions as follows: 1) the initial level of technology plays an essential role in the development of new-tech startups; 2) there is an optimal percentage of innovative R&D investment; 3) institutional arrangements will affect the impact of private R&D policy; 4) a good pattern of regional knowledge management is to speed technology diffusion but not keeping technology secret.
This article examines the real exchange rate behavior during pre-crisis post-crisis periods in selected East Asian countries by verifying its long-run stability with unit root tests and investigating the interactions among the component variables of the real exchange rate i.e. the exchange rate the relative prices with a vector autoregressive (VAR) model. The main findings of the study are as follows. First the results of the unit root tests indicate a non-stationarity of the real exchange rate of each sample country during the pre-crisis period. Second, the test results show the stationarity of the real exchange rates in all the sample countries during the combined crisis post-crisis periods although during the post-crisis period alone they do not always remain stationary. Third the results of the VAR model analyses reveal that most of the cases during the combined crisis post-crisis period covering all sample countries support the Granger causality from the relative prices to the exchange rate describe a significant continuous effect of the relative prices on the exchange rate.
This paper discusses the relationships between regional differences of citizens' awareness and social capital for climate change policies. Nowadays greenhouse gas emissions for households and the service sector are especially increasing in Japan. Therefore raising citizens' awareness of climate change policies is necessary at the regional level. This study focuses on social capital (SC) which shows regional qualities. It is also known as an indicator that affects regional policy performance. The definition of SC in this paper is based on Putnam (1993), “SC refers to features of social organization, such as trust, norms, and networks that can improve the efficiency of society by facilitating coordinated actions.” “The public opinion polls for climate change policy” by the Japanese cabinet office was used as the indicator of citizens' awareness. The relationship between citizens' awareness and SC was analyzed based on the Principal Components Analysis. Moreover, how the results of this analysis affect a low carbon society was analyzed by the Data Envelopment Analysis. As a result the awareness factors that were affected by SC and regional characteristics were clear. Finally, it was recognized that we should consider possible uses of SC according to regions and sectors for climate change policies.
Now that the first five-year commitment period of the Kyoto Protocol has begun, the prevention of global warming is becoming an issue of highest priority in Japan. Promoting renewable energy and improving energy efficiency in each community are important challenges to reduce CO2 emissions. Therefore, this study focused on developing an energy planning method for local governments, particularly considering the following points. Research background and review of the MARKAL model focused on : ·Examining the historical research on local energy planning with MARKAL (Market Allocation) developed and maintained by the International Energy Agency's Energy Technology Systems Analysis Programme. ·Illustrating the basic structure of the Regional MARKAL model as mainly related with the Reference Energy System and a Regional energy balance table. Modeling the Enhanced Regional MARKAL model focused on : ·Improving the Reference Energy System of the Regional MARKAL model by associating it with renewable energy units and energy efficient technologies. ·Revising a regional energy balance table and extending data until 2005. ·Building local energy scenarios that consider different assumptions in each local government such as population size, economic conditions, etc. Application of the Regional MARKAL model focused on : ·Applying this Regional MARKAL model to Tokyo and evaluating energy consumption and CO2 emissions. This study developed an energy planning method for Japanese local governments. This Regional MARKAL model can be applied to all types of government. There is little experience in energy modeling at the regional level in Japan, so this model can be used by local governments as an effective tool in mid-to long-term planning for sustainable energy.
Social benefit is a term to measure the social usefulness of public investments. Benefits are direct or indirect benefits that are classified into origin based benefits or incidence based benefits. The social benefits are generally calculated based on the incidence benefits. In this paper, we assume a closed economy and analyze whether benefits based on the incidence are greater than those based on the origin. The external economies are Marshallian type and regarded as factory scale enlargement effects. In this study, other types of external economies called technological propagation and dispersion effects are introduced. A general equilibrium model is constructed. There are n industries and each firm or industry produces goods from intermediate goods and labor. Each firm in an industry faces an identical production technology and there is a market price for the industrial goods of each firm. Each firm can choose a different production technology without any additional costs. Each firm has decreasing returns to scale and the profit of each firm in the same industry attains an equilibrium level. Identical households are assumed. The household sector maximizes its utility subject to income and the subsidy system is introduced when the solution is a social optimum. We compared two kinds of benefits to a large-scale project, origin based and incidence based, with the technological propagation effects of Marshallian external economies by using partial and general equilibrium models. In our numerical simulation, two types of industrial structures were set up. In both the market equilibrium and the social optimum, two kinds of benefits were calculated by changing the parameters of the externalities of technological propagation and dispersion effects. We showed it is important to measure the benefits based on incidence, especially if technological propagation and dispersion effects exist in the economy. We also showed that in the social optimum the incidence based benefits become more important.
In a basin, the environment along the waterside in upstream and downstream regions is very different. For example, depopulation and conservation of forests are serious problems in upstream regions. In downstream regions, access to water is important. Therefore, it is necessary to consider the differences among regions in environmental management along the waterside. The environmental valuation by local residents is also important in environmental management. We clarified the environmental valuation along the waterside through the impressions of local residents to consider differences among regions in environmental management. According to Cramer's coefficient of contingency and factor analysis, the environmental valuation along the waterside is composed of ‘the components of impression', ‘impression' and ‘common factors'. Second, this study clarified characteristics of the regions by conducting a survey of the Kamo River Basin. Regions for implementation of a social survey are chosen based on the characteristics ofregions. A social survey was implemented to clarify problems and characteristics of the regions and impressions of the local resident along the waterside. In this study, it was shown that this valuation can be applied to the environmental valuation by taking into account the characteristics of up and down stream regions. It was also clear that the impression analysis also contributes to environmental management along the waterside. Finally, environmental management along the waterside should be done with consideration for ‘diversity and integration'.
In this paper, the reliability of a system to provide municipal water under risks of water quality and quantity is considered. We focus on two contexts of the system; one is a trend to introduce market mechanisms including some forms of “privatizations” because of pressure from public finance, and the other is the need to invest in maintenance and renewal of deteriorated water supply facilities that require drastic reform of the operations of local governments in the near future. Many public services must establish supply systems that stabilize their services consistent with an efficient management system. In the reform of municipal water supply systems, management of both quality and quantity risks is one of the most important concerns. We investigated three main issues. First, we examined the quality and quantity risks and the current institutional measures for the provision of municipal water. Second, the present supply system was studied from the view of who is in charge of the risk management. Third, we exhibited “the reliability evaluation model”, which shows the marginal benefit of an increase in reliability is equivalent to the marginal cost of the project for risk management. The model can show the optimal reliability level or the optimal investment level to achieve a certain reliability level. The welfare measure of the reliability benefit is, however, classified into several types. The proper welfare measures for change in risk (reliability) of risk-averse individuals depends on three conditions; the availability of conditional markets for redistribution of the risk, whether the project cost is certain or conditional, and whether the risk the economic agents face is a collective or individual risk. The appropriate measures, either option price, ex-post compensation, fair bet point, or their expected values, were assigned to combinations of each case. We classified some of the measures for water supply risk into each welfare measure in line with these conditions and note that the precise classification and identification of proper measurements is left for future empirical analysis. This work was supported by KAKENHI (20730188).
People may feel inequality via not only economic level but also a sense of satisfaction and fulfillment. Social indexes shown by the satisfaction and fulfillment levels should be key factors to analyze regional inequality. This study aimed to show factors causing regional satisfaction gaps by the structural equation model (SEM) with statistics and questionnaire surveys from towns in Yamagata and Yamaguchi Prefectures. Results demonstrated the following features. First, the economic situations and social capital (represented by trust, altruistic moral and human network) are both important factors with positive effects on the satisfaction level, but there is a trade-off between these effects. Hence, regional economic gaps can be alleviated by social capital that is highly maintained in less favored areas. Second, public facilities can increase satisfaction levels as long as these facilities are built based on the consensus and needs of residents. Third, economic factors and public facilities directly increase the satisfaction level, whereas effects of social capital are relatively indirect, affecting satisfaction through other factors. The same tendency was seen in both prefectures, so these factors may be general in Japan. As shown by the above results, the SEM approach with cross sectional data obtained from statistics as well as questionnaires is useful and can reveal general relationships existing in the social structure. Such analyses can reinforce the results of case studies.
More than 40% of forests in Japan are artificial, and forest stocks have increased. However, many artificial forests have been abandoned, particularly those belonging to owners of small private forests. The abandonment of forest management been partially attributed to aging of the owners as well as to economic changes surrounding forestry. In this paper, we focus on the geographical conditions of private forests as factors in abandonment. We studied the village of Nishiawakura-son in Okayama Prefecture. Forests occupy 95% of the area of this village. Forests are classified by ownership into private forests (51% of total forest area), public forests (28%), company forests (17%) and others. Of 284 owners, 248 own less than 10 ha of forest. We studied the history of forestry in the village, analyzed the spatial characteristics of the small forests with a geographic information system (GIS) and interviewed 27 small private forest owners. The results suggest the following. In general, private forests are located at lower altitudes than forests of the other ownership categories because most of these forests were used as common forests for villagers until they were divided into private holdings in the 1940s. However, smaller private woods were often located far from usable roads. This suggests that small private owners cannot easily access their forests, even though the forests are located at lower altitudes that should be convenient for forest management. Owners of forests close to roads were more likely to manage their forests well. The owners who abandoned forest management reported various reasons for abandonment, some of which were related to the distance of their forests from roads. However, several owners abandoned forest management, regardless of the distance from a road. These owners did not have forest management experience and could not manage their forests, even if the forests were easily accessible. We conclude that geographical factors dating from former usage affect present-day forest management, although geographical factors have not directly lead to the abandonment of forest management.
With a rapid decrease in the population of Japan, drastic changes in the allocation of scarce public resources appear to be needed to sustain regional economic growth. According to a series of new economic growth studies, the effects of improvements in labor productivity and R&D activities on growth has been examined by estimating the production function for which inputs are either knowledge stocks or human capital, while the contributions of physical stocks on growth have been less emphasized. The relative importance and interdependence of these capitals on productivity are not positively inspected enough. In this study, we examined the relationship of social overhead capital, the accumulation of public physical investment, and human capital, public expenditures to improve labor productivity, and their effects on productivity. We especially focused on the differences in regional attributes, because there are gaps in the impacts of the decline in population on regional growth. Estimates of the Cobb-Douglas type production function with aggregated data from Metropolitan Employment show that both the social overhead capital and the human capital have significant effects on regional productivity. The relationship between production factors was also investigated by estimating the cross parameters of the Trans-log type production function. Human capital substitutes the effects of private capital on the output, whereas the quantitative labor force compliments it. The social overhead capital compliments the efficiency of private capital and human capital but substitutes the quantitative labor force.
In recent years, with the aging of farm households and an increase in the number of non-farm households, it is becoming increasingly difficult for farm households alone to maintain and manage the common-pool resources (CPRs) in the farm villages of Japan. Therefore, cooperation between beneficiaries including non-farm households is desirable. However such cooperation may be difficult to achieve, because the participation of non-farm households in the management of such resources causes a diversification of stakeholders. The purpose of this research was to clarify the mechanisms involved in the management of CPRs through the identification of determinants for activities to manage agricultural irrigation and drainage channels to find appropriate ways for maintenance and management of the common-pool resources (CPRs) in rural area. First, we review both the theoretical and empirical studies on the issue of CPRs and set up the management problem of the irrigation facilities in the Nishi-Kanbara region of Niigata Prefecture, Japan as part of the analysis for the framework of a social-ecology system. Second, we clarify the mechanisms for management of CPRs by identifying data from Niigata Prefecture at the rural community-level based on the analytical framework presented by Kiminami. Finally, a policy for the management of CPRs and future research agenda are indicated. As a further extension of the study, it was necessary to consider that the management of common-pool resources in the region are actually performed in light of several concurrent interactions between public infrastructures (institutions and physical infrastructures), social capital, resource users, public infrastructure providers, and the resources, and to examine the policy of the framework. Therefore, analysis of the influence of the policy based on both individual decision making processes and management activities at the community level was deemed necessary as a future research task.
Questionnaire surveying has been one of the main means to surface the needs from local residents for local governments or communities and the survey results have been utilized to make concrete policies and measures in almost all local governments in Japan. However, there exists a question whether evaluation questions of satisfactory level and importance assessment on living environments of local community catch the real preference of local residents or not. In this study, based on the questionnaire survey conducted in the town of Shingu, Hyogo prefecture in 2004, we suggest that questions which ask satisfaction and importance level for residents' living environment items by means of ordinal scale such as grading from poor through mediocre and good to excellent tend to overestimate various needs due to external effects of local public facilities and services such as option values, existence values, vicarious values and bequest values and thus we propose the introduction of quantification methods such as CVM(Contingent Valuation Method) to surface the local issues and make the local community management effective. Of course there exist biases in stated WTP(Willingness to Pay), we conclude that the biases derived from evaluation questions using ordinal scale are much greater than biases observed in WTP evaluated by using CVM. As a further extension of this study, we also suggest an introduction of other appropriate evaluation methods such as AHP and conjoint analysis.
The purpose of this paper is to investigate the Chinese economic upgrades of her industrial structure by analyzing money flow and structural changes in employment. To expand the industrial sector, capital and labor forces are indispensable. The time span considered is from 1978 to 1998, when the market economy was introduced and rural enterprises were positively established in particular. First of all, we examine the function of capital to explore whether the agricultural surplus contribute to the emerging of the industrial sector. Secondly, we determine whether the composition of labor force changed the industrial structure. We use the methodology of DPG analysis, which measures the deviation from proportional growth. We conclude that the agricultural sector in China has been a surplus unit since 1989. The surplus generated in agriculture was invested in the industrial sector through financial institutions, by which the capital inflow turned to be an influential factor in industrial development. On the other hand, the size of labor force has increased by about 1.1 times every five years since 1978, when the transition towards a market economy began. From 1986 to 1990, the leading sector of growth shifted from the secondary industries to the tertiary industries. All in all, we demonstrate the upgrades of industrialization occurred from 1986 to 1990 by analyzing the capital and the labor force.
This study deals with the behavior of financial institutions that recently restructured their branches or offices. Japanese financial institutions were under strict geographic banking restrictions until the mid 1990s. Although these restrictions are completely repealed now, the number of branches or offices providing financial services for individuals has decreased during this decade in Japan. According to Azegami(2005), this phenomenon may be caused by technological progress in finance, population decline in many municipalities, and the recession of the 1990s. Some studies show that the number of branches or offices is related to the population and the number of establishments in business areas. First we reexamined this relationship in the Tohoku Region of Japan consisting of six prefectures; Aomori, Iwate, Miyagi, Akita, Yamagata and Fukushima. The financial institutions here include city banks, regional banks, regional banks II, shinkin banks, credit unions and labor credit associations. The results support our prior studies and show that branches or offices concentrated not only in cities but also in certain small towns play a role as the economic center of the rural region. Next we investigated the relationship between the number of closed branches or offices (from the end of September in 2002 to the end of October in 2006) and several explanatory variables such as the change in population. We presumed that there were more closed branches in areas where the population or the number of establishments had decreased. From the results of our OLS analysis, we determined that the number of closed branches was significantly correlated with the decrease in establishments. Against our predictions, the coefficient of population change was positive, indicating branch closure was more frequent in the urban areas where population was still growing. Moreover, we clarified that institutions merging with others significantly decreased the number of branches. Finally, we found two cases in which one of two branches had been closed in a municipality and another two cases in which the only branch disappeared from a village. Such towns or villages are still few but inhabitants will have to pay extra transportation costs if the only branch in a town or village closes.
Based on the results of Tekeuchi et al.(2008) “a questionnaire of administrative and fiscal reform (Sep. 2006),” in three prefectures of the Tokai Region, we performed a cluster analysis for the municipalities that did not merge from 2000 to 2006 to clarify the crucial reasons for clustering these municipalities. To make the clustering more objective, we also conducted a cross tabulation analysis with the results of the questionnaires on how the Trinity Reform affects administrative and fiscal reforms of the municipalities. The Trinity Reform, originally to increase the freedom of administrative and fiscal management of municipalities, was conducted in parallel with municipal mergers to raise the efficiency of the municipalities. After the reform, some studies tried to confirm whether or how it affected the administration and fiscal situation in the municipalities. In the Tokai Region, Tekeuchi et al.(2008) carried out the questionnaire survey in 2006. Additionally, the Ministry of Internal Affairs and Communications(2008) investigated why the municipalities merged and the effects of the municipal merger by sending a questionnaire to all municipalities in Japan. However, both of these questionnaires only showed descriptive statistics, so the tendency of the answers for municipalities was not adequately captured. To overcome these shortcomings, we performed both the cluster analysis and the cross tabulation analysis by using 2 questionnaires replied by the municipalities that did not merge using Chapter 1 and 3 questionnairs in Chapter 2, among 5 chapters, consisting of "1. Municipal Merger," "2. The Trinity Reform and Devolution," "3. Improvement of the Administration," "4. Future Image of the Administration of the Municipalities" and "5. Fiscal Situation of the Municipalities" in Tekeuchi et al.(2008) to make. First, we classified 79 municipalities by the replies to the question, "why did your municipality not merge ?" using a principal component analysis. Based on these results, we conducted a cluster analysis. Second, we used the replies to the 3 questions, "how much was the reduction in public spending for your municipality directly required by the Trinity Reform ?" "how much was the securement of public revenue for your municipality required by the Trinity Reform ?" and "how much was the autonomy of fiscal management for your municipality allowed by the Trinity Reform?" to make a cross tabulation analysis. From these analyses, we found that the choices: "anxiety with worsening of the efficiency in administration and finance," "value in the benefits for the residents," "decisions on fiscal administrative operations by individual municipalities" were the main benchmarks for clustering municipalities. We also found that the municipalities which did not merge had a different opinion of the Trinity Reform: The municipalities which could operate fiscal administration by themselves tended to make a positive assessment on the Trinity Reform; The municipalities which are concerned about the deterioration of fiscal administration or thought much of the benefits of their citizens tended to make a negative assessment on it.
A quantitative analytical study on the output of head office activities (henceforth OHOA for simplicity) has been scarcely advanced, because in most economic accounts such as the SNA this subject is rarely taken into consideration. In this paper, we discuss an empirical analysis of OHOA based on data available from the Tokyo Metropolitan Interregional Input-Output (I-O) Tables for reference years 1985, 1990, 1995 and 2000. For effective analysis, we define and classify the three types of OHOA based on the ratio of domestic exports for OHOA in Tokyo Metropolis and the national shares of OHOA in Tokyo Metropolis: (1) national effective type, (2) local effective type and (3) non-local effective type. This classification is the original classification for OHOA based on Leontief's, Chenery's and Moses's ideas. First, we examine the distinctions of OHOA in Tokyo Metropolis by type. Then, we consider the difference in OHOA type for Tokyo Metropolis based on the intermediate input of head office sectors. Consequently, the reason for the accumulation of the national effective type in Tokyo Metropolis must be the comparative advantage of gathering the business information and the full supply capacity of special business services.
The purpose of this paper is to describe the Russian pipeline policy and the counter-measures conducted by consuming countries, which provides a worthwhile lesson for Japan as a permanent energy importer. The nature of pipelines is to form a “natural monopoly” because of the huge investments required and superiority taking precedence against late comers. Russia, the second largest oil producer in the world, has constructed oil exporting networks to ports on the Baltic Sea and the Black Sea as well as an inland pipeline system to Eastern Europe, named “Druzhba”. The latter system has worked to keep Eastern Europe as an isolated economic realm separated from the western world, because this region can not afford to purchase crude oil from the international market due to a lack of hard currency. Russia also has plans to construct several new pipelines to not only cope with future oil demands but to expand transport capacities and access future oil markets. These new pipelines will make use of Russia's geographical characteristics to face the lucrative market of Europe and also the emerging market of Northeast Asia by expanding pipeline infrastructure. Among Russia's planned new pipelines there is a new oil supply system from East Siberia to the Pacific Ocean (ESPO) planned to access new markets in Northeast Asia. Construction has started from Taishet to Skovorodino, however China has been facing a difficulty to agree with Russia in constructing a cross-border oil pipeline from Skovorodino to Daqing because of a precaution by Russia over a so-called “hold-up problem” (making a pipeline to a single country makes the consuming country stronger aginst the supplying country). It is necessary for Russia to construct a dual supply system, i.e. one for the Pacific Ocean and the other for China (the Daqing Spur). Meanwhile, China finally reached agreement with Russia to construct a cross-border oil pipeline from Skovorodino to Daqing with a contribution of a $25B soft loan to Rosneft and Transneft, an example of the success of a difficult project through financial participation by the consuming country. Any pipeline eventually creates a political effect on production, transit and consuming countries, but pipelines are capital intensive infrastructures for which the decisions are made based on the economics and stabilities of operations, not on political effects. On the other hand, politics or consistent engagement by governments is a unique driving force to establish large scale infrastructures such as cross-border pipelines that will contribute to regional stability and prosperity.