The price of land rose quite rapidly in Japan in the period 1986 to 1990. It was particularly remarkable in metropolitan areas. In this period, the number of the manufacturing industries also decreased rapidly in the ward area of Tokyo metropolis. Based on the traditional theory of industrial location, it can be said that the decrease of number of industrial location in Tokyo metropolis was
... [Show full abstract] caused by the external diseconomy generated by the rise of the price of land. From the side of the accrual accounting, it can also be said that the rise of the price of land brought latent profits to enterprises as an external economy. In this paper, two kinds of time seriese data, the change of the industrial location from 1960 to 1990 and the change of the land use from 1977 to 1991, both of Tokyo metropolis, are provided to study the relation between these time series and the corresponding time series of the price of land. It is observed that the behavior of the industrial location channged depending on the level of the land price. In particular, it is clearly seen that the industrial location was active when the level of the land price was low and that the sizes in terms of the number of employee of newly locating manufacturing industries decresed as the land price increased. The extremely high level of recent land price almost prohibited the location of any kind of manufacturing industry in Tokyo metropolice. It is further observed that the manufacturers tended to sell their properties when the land price went up and that they acted quite sensitively to the change of the price level. © 1993, JAPAN SECTION OF THE REGIONAL SCIENCE ASSOCIATION INTERNATIONAL. All rights reserved.
