The Estimation and Analysis of the Head Office Sector in Each Intra-regional Input-Output Table in Tokyo, Aichi, Osaka, and Fukuoka in 2011

The central management functions of the economics, politics, and culture of Japan are concentrated in Tokyo or in other metropolitan areas. Extreme concentration in Tokyo has become a serious problem for Japan. There is a concentration of headquarter function in Tokyo that falls behind the concentration of profits of other regions. Production activities such as branch offices and factories usually take place in regions outside Tokyo. Indirect management activities, which supervise production activities, are called headquarter functional activities. There is a structure in which profits from other parts of the country are concentrated in Tokyo through the corporate division of labor. To analyze this mechanism quantitatively, we must apply input-output tables, which is appropriate to examine headquarter services as intermediate goods of direct production site activities. In this research, we estimate 37 head office sectors in each intra-regional input-output table in Tokyo, Aichi, Osaka, and Fukuoka, known as regions in which many Japanese head offices are located. Moreover, we analyzed the inter-regional relationships between the head offices located in these four regions and the dependence of these regional economy on headquarter functional activities. (183 words)