Analysis of chugoku region using the 2015 input-output table for all municipalities from the viewpoint of inter-regional trade

One of the roles of economic statistics is to analyze the economic structure in units of small regions, such as municipalities. The input-output table visualizes the industrial structure of the region through economic transactions between industries. Input-output analysis using input-output tables is a useful analytical method for regional policy formulation. It has a wide range of uses, including measuring policy and employment effects, providing evaluation data for policy choices, and analyzing the economic impact of social events. However, currently, all prefectures and some cities, such as ordinance-designated cities, are subject to published input-output tables. Such an analysis of the scale of prefectures may be inconsistent with the reality of the formation of diverse economic zones. Therefore, there are many examples of creating and analyzing input-output tables for each municipality. In Suhara （2022） as well, in addition to the analysis of headquarters located in the Chugoku region on a prefecture-by-prefecture basis, based on the input-output table for all municipalities in 2015 created by Suga, Ide, Ishiro, Watabe, Inoda, and Suhara （2023） conducted a quantitative analysis of the head office functional activities of municipalities in the Chugoku region. As a result, nearly half of the headquarters in the prefecture are concentrated in the prefectural capital, Yonago City in Tottori Prefecture, Izumo City in Shimane Prefecture, Kurashiki City in Okayama Prefecture, Fukuyama City in Hiroshima Prefecture, and Shimonoseki City in Yamaguchi Prefecture. Headquarters are also located in cities that are not prefectural capitals, indicating a dispersed trend. One of the remaining issues is that the input-output table for all municipalities obtained by Suga, Ide, Ishiro, Watabe, Inoda, and Suhara（ 2023） has not reached a detailed estimate of final demand items. As a result, exports and imports are not specified as part of “other final demand.” In other words, we have not reached an analysis of interregional trade on a municipal basis. This is due to the fact that interregional trade cancels each other out on a nationwide basis, and were omitted in order to prioritize overall consistency. However, the smaller the region, the smaller the weight of intra-regional trade and the greater the importance of quantifying the results of trade with surrounding regions. Ultimately, the goal is to clearly show the value of exports and imports in the input-output tables for all municipalities. To uniformly estimate municipalities, there is a risk that trial estimates based on metropolitan areas such as the Tokyo metropolitan area will select estimation methods that do not match the actual conditions of many other small municipalities. Therefore, in this study, we conducted trial estimations for input-output tables for all municipalities in the Chugoku region, where depopulated areas are concentrated, as well as regional centers and areas where traditional industries are thriving. Based on the input-output table for all municipalities estimated by Suga, Ide, Ishiro, Watabe, Inoda, and Suhara（ 2023）, we will add further estimates for each municipality in the Chugoku region and analyze it.