Multiplier Decomposition and Regional Interdependence in the Chubu Region

In Chapter 8, we focus on the multiplier decomposition and discuss the regional interdependence in the Chubu region. In this chapter, using the Chubu region interregional IOT described in Chapter 4, we examine the mutual relationships between each prefecture in the region by decomposing induced productions of final demands by region. Then, we decompose the secular changes in the induced productions in 2011 and 2015 into technological change and market change factors. Furthermore, in relation to the technological change factors, we apply the multiplier decomposition method to measure the spillover multiplier and feedback multiplier among the nine prefectures in Chubu region, which reveal changes in the interdependent relationship among Aichi Prefecture, its eight surrounding prefectures, and the rest of Japan (ROJ).