Study o the independent local economy and local public investment

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Measures and strategies to support an independent local economy have become urgent matters to be addressed in recent times. By being geographically an outlying region, Hokkaido has only history of development as a prefecture. Taking into consideration the characteristics of the socioeconomic structures particular of Hokkaido and Okinawa as two outlying regions, this study examined and evaluated the economic effects brought about by public expenditures on industrial and social infrastructures as material political strategies and compared them with corresponding national levels. As a result, the followings facts were revealed through quantitative analysis: Hokkaido and Okinawa suffer lower growth rates and fewer production factors than in other prefectures; both prefectures experience lower wages due to lower returns to capital; compensation for low growth is provided by their development budgets; and industrial structure remains unchanged even when provided public investments. These eco … More nomic factors create in a money flow, which results in an interregional-balance deficit, retarding the independence of the local economy. Due to the future expected clarification of the profit-and-gloss mechanism as well as an anticipated further drastic reduction in public investment, local autonomies have to find ways to become economically independent. "City planning","aspecialy products" and "human resources" are three important factors for such independency. Among them, the investment in human resources is particularly important to create the necessary capable personnel to plan and implement strategies for local development. To achieve this goal, local governments need to autonomously revitalize themselves by cooperating with local industries and better valuing local unique traits and specialties. For local governments to grow economically, they need to create original measures which take advantage of local historical or cultural assets and link them to schemes for reforming local spatial structure such as urban renewal schemes. This study has provided and effective evaluation methodology by examining how to redirect financial policy which prioritizes public investment while supporting the economic independency of local autonomies. Less