Impacts of Tourism and Fiscal Expenditure on Remote Islands in Japan:
A Panel Data Analysis
Noriko ISHIKAWA
Graduate School of Science and Technology, Kobe University
1-1, Rokkodai-cho, Nada-ku, Kobe, 657-8501, JAPAN
*
Mototsugu FUKUSHIGE
Graduate School of Economics, Osaka University
1-7, Machikaneyama-cho, Toyonaka, Osaka, 560-0043, JAPAN
Abstract
Japan consists of many small inhabited islands in addition to four main islands. We examine
the impact of fiscal expenditure and the number of tourists on per capita taxable income in remote
islands using panel data analysis. The results show that both fiscal expenditure and population size
have significant positive impacts on per capita taxable income, whereas the number of tourists
does not have statistically significant impact. They indicate that tourism development would not
work as a substitute for financial support from the government. In other words, continuous
financial support may be needed to maintain the islands’ economies.
Running Title: Impacts of Tourism and Fiscal Expenditure in Japan
Keywords: Tourism Multiplier, Fiscal Multiplier, Remote Islands, Panel Data Analysis
JEL classification: O23, R58, Q56, L83.
* Correspond to: Mototsugu FUKUSHIGE
Graduate School of Economics, Osaka University
1-7, Machikaneyama-cho, Toyonaka, Osaka, 560-0043, JAPAN
Phone. & fax: +81-6-6850-5248;
E-mail: [email protected] (M. Fukushige)