The author studied development processes and organization of production of the Mizuhiki (a ceremonial paper cord) Industry in Iida City and Shimo-Ina County. The results are as follows;
1) About 20 kinds of Jiba Sangyo such as Frozen Bean Curd and Iida Silk industries are developed within Iida-Shimo-Ina region because there is no extension of big enterprises. The Mizuhiki Industry, one of the typical Jiba Sangyoes in this region, was established in the latter part of the 17th century as a side business for the Motoyui (a paper cord using for tying the Japanese traditional hair style) Industry. At the end of the 19th century, the main industry of this region gradually shifted from Motoyui to Mizuhiki. In 1982, the main producing areas of the Mizuhiki Industry in Japan are Nagano Pref., Tokyo Met., and Ehime Pref.. Production in Nagano Prefecture has emerged during recent years and Iida-Shimo-Ina region produces most of the output of Nagano Prefecture.
2) The Mizuhiki is produced by the system of wholesaling domestic industry (Wholesaler-Broker-Processeor). The wholesaler does the following business; (1) supply their necessary raw materials based on its production schedule, (2) orders subcontracting household workers to process, (3) collects and sells the output to the whole country, and (4) controls the whole business listed above.
3) In 1980, the total annual value of products by 13 wholesalers and 56 related businesses in this region was more than 7 billion yen and it constructed 70% of the country's output. Wholesalers, which are located in covenient places for transportation within Iida City and Kanae Town (a part of Shimo-Ina County), deliver raw materials to subcontracting household workers distributed in this region, and order them to process.
4) The number of subcontracting household workers for the Mizuhiki Industry is about 10, 000 and their average income per month ranges from 50, 000 to 150, 000 yen. Because of their very low wages, it is very difficult to employ younger workers. In other words, the average age of workers is going up year after year. Recently, in order to conpensate for the shortage of workers, wholesalers have been using workers from adjacent areas such as Kami-Ina and Kiso counties and, furthermore, out of the prefecture and overseas.
5) The Mizuhiki Industry owes its stable management to the subcontracting household workers' low wages. However, there are many problems which have to be solved hereafter such as the shortage of younger workers and the out of date structures and organization of this business.

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