04/07/2007

Status and Causes of Regional Disparity in the Economic Recovery

Satoshi Shinohara 

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Regional disparities in the strength of the current economic recovery can be partly explained by differences in industrial structure, especially in the weight of the machinery industry, which has driven economic growth. Also, outlying regions tend to lag behind major metropolitan regions, and depend more heavily on public investment. Thus public investment cutbacks in recent years may also be widening the disparity. Looking ahead, it is increasingly important that regional economies reduce dependence on public investment and shift to an industrial structure that emphasizes private demand.

Satoshi Shinohara

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