Correlation Analysis Of Leading Industry In Japan

With the intensifying trend of globalization in the21st century, industrial pattern hasnot been restricted by regional or national constrictions and industrial correlation hasincreased among regions and countries. The development of technology andtransportation has also made contribution to this trend. According to experiences ofdeveloped countries, perfect leading industries can stimulate better economicdevelopment. In recent years, information industry, especially informationcommunication industry, has become the leading power of industrial development andthe symbol of technological development for one country. This paper will focus onJapan’s information communication industry and make analysis on ripple effect ofleading industry. The research will provide theoretical support for the setting of industrialpolicies and arrangement of location of information communication industry. It willmake much sense to contribution to Japan’s economic development due to its leading rolein economic growth.In the aftermath of Leontief’s putting forward of industrial correlation theory,theories about industrial correlation have been developed for several decades. Both theresearches focusing on industrial correlation within one region or country and acrossregions or countries are not good at analyzing ripple effect of one industry. In this context,this paper makes analysis on the ripple effect of information communication industry.According to the input-output equation, this paper gets detailed input-output table ofsub-industrial sectors based on total demand, and then gets the indirect induced amountof information communication industry to economy to make analysis on the ripple effectacross regions by matrix transformation. This paper has two innovation points: first, theresearch object is the ripple effect of the leading industry instead of industrial interactionof two industries; second, the research method is matrix decomposition and matrixtransformation to calculate the ripple effect of information communication industry whenit comes to correlation effect across industries and regions.This paper consists of four chapters. Chapter One makes introduction to the researchbackground, importance and literature review of industrial correlation theories. ChapterTwo describes the developmental stages of leading industry in Japan. Chapter Three makes analysis on the ripple effect of information communication industry by analyzingthe technological consumption and correlation effect of information industry, and makeanalysis on both the industrial and regional correlation effect of informationcommunication industry by employing matrix transformation to get the conclusion of thispaper.This paper believes that offices have the closest relationship with informationcommunication industry, and the next is emerging service sectors and traditionalindustrial sectors with input-output correlation with information communication industry.Information communication industry has great influence on emerging service sectors andtraditional industrial sectors with input-output correlation with informationcommunication industry, and direct and indirect induced amount together account for10%of the contribution to total demand, which indicates quantity does not play dominantrole in the development of information communication industry as leading industry.Information communication industry in most regions has the biggest indirect inducedamount locally, and the indirect induced amount of Shikoku with substantial share of theprimary industry to itself is less than it to Kanto, and other regions have high inducedamount to Kanto. According to the analysis on ripple effect of Kanto, it has been foundthat information communication industry is a geographically dependent industry, and itsinduced amount to other regions is inversely proportional to the distance to those regions,which can be also got from the ripple effect across regions.