A Study on the Interaction Inside the Industrial Structure of Tokyo Metropolitan Area Based on VAR Model

Abstract

There is a close relationship between the change of industrial structure and the change of internal industry. This paper use Industrial economic output data of Tokyo metropolitan area on 1970-2009, based on the treated industry’s inflation rate, build the VAR model of Tokyo metropolitan area finance and insurance industry to study the correlation by manufacturing and the changes in the real estate industry. It is concluded that the changes of the financial insurance industry and the real estate industry will have a negative effect on the change of the manufacturing industry. From the perspective of industrial structure, the main reason for the changes in the industrial structure is the change of the industry itself, but the changes of the third industry will have a negative impact on the changes of the second industry.