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An Econometric Analysis of Roadside Stations in Japan that were given New Type Grants

Author

Listed:
  • Ryusaku Matsuo

    (Graduate School of Economics, Kobe University)

  • Mitoshi Yamaguchi

    (Graduate School of Economics, Kobe University)

Abstract

Roadside Stations were first constructed in Japan by the erstwhile Ministry of Construction (now known as the Ministry of Land, Infrastructure, Transport and Tourism) in 1993, when a total of 103 stations were set up. In 1999, this number had increased to 551, and by 2013, it had reached 1014. As of 2020, there are 1173 Roadside Stations. A Roadside Station system is a registration system for facilities with three roles: rest, offering information, and regional alliance functions. The activities of Roadside Stations lead to endogenous development. Therefore, we sought to measure their contribution to the economy. We used several simultaneous equation models, which include variables such as parking space, sales figures, management expense, number of visitors, number of events, and gross business expense. In previous papers, we calculated the ripple effect of the Roadside Station on the economy. Here, we demonstrate that the number of employees is estimated to have increased by 250 and 266 in the regions of Hanshin and Tajima, respectively. Moreover, according to our research, the effective multiplication factor in the Hanshin region in Hyogo Prefecture was 1.55. The annual sales of all Roadside Stations in Japan were estimated to be approximately 250 billion yen in 2015. If the research result in the Hanshin region is applied to this annual total amount, the economic ripple effect of Roadside Stations for all regions in Japan is estimated to reach 375 billion yen. In 2007 and 2010, two grants were provided to selected Roadside Stations. One was the 2007 Nou-san-gyoson Kasseika Project Shien Kofukin (Grants to Support Projects to Revitalize Rural Areas, GSPRRA), and the other was the Shakaisihon Seibi Sogo Kofukin (Comprehensive Grant for Infrastructure Development, CGID) in 2010. Of the 83 stations in this study, 27 received the new type of grant. The stations that received these grants saw a significant improvement in their business. Therefore, it is important to measure the factors that impact the sales of Roadside Stations in Japan.

Suggested Citation

  • Ryusaku Matsuo & Mitoshi Yamaguchi, 2020. "An Econometric Analysis of Roadside Stations in Japan that were given New Type Grants," Discussion Papers 2016, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2016
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