- Friday 23 August 2019
- Professor Junmin Wan; Fukuoka University, Japan
Based on the existing literature on the Tokyo Bay Area, it is found that industrial agglomerations have accelerated since World War Two, and that the reasons can be classified into market power and governmental industrial policies.
From the viewpoint of regional economic growth, it could be said to be a success. However, this success has been accompanied by unsuccessful byproducts. The first one is congestion because of the high density of economy and population. The second one is the increase of living costs for residence in the area. These byproducts induced a serious land bubble in the 1980s and lost thirty years from the Japanese economy.
Furthermore, the land bubble is confirmed by time-series data on the ratio of land price to rent in the Tokyo Bay Area and the bubble test. Finally, we explored the historical causes of the Tokyo Bay Area and the formation and crash of the bubble, and the lessons of Tokyo to both the Greater Bay Area (Guangdong, Hong Kong and Macao) and US-China trade friction.