Empirical Analysis of Head Office Activities in Tokyo Metropolis

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  • KANEKO Hidefumi
    Depuaty Manager, Division of Statistics, Tokyo Metropolitan Government

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A quantitative analytical study on the output of head office activities (henceforth OHOA for simplicity) has been scarcely advanced, because in most economic accounts such as the SNA this subject is rarely taken into consideration. In this paper, we discuss an empirical analysis of OHOA based on data available from the Tokyo Metropolitan Interregional Input-Output (I-O) Tables for reference years 1985, 1990, 1995 and 2000. For effective analysis, we define and classify the three types of OHOA based on the ratio of domestic exports for OHOA in Tokyo Metropolis and the national shares of OHOA in Tokyo Metropolis: (1) national effective type, (2) local effective type and (3) non-local effective type. This classification is the original classification for OHOA based on Leontief's, Chenery's and Moses's ideas. First, we examine the distinctions of OHOA in Tokyo Metropolis by type. Then, we consider the difference in OHOA type for Tokyo Metropolis based on the intermediate input of head office sectors. Consequently, the reason for the accumulation of the national effective type in Tokyo Metropolis must be the comparative advantage of gathering the business information and the full supply capacity of special business services.<br><br>JEL Classification: R11, R12, R39

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