Silviase/jgov_v1.4_full_ann huggingface dataset:
For example, if we look at the projects for increasing society’s base productivity, Japan’s economic society has many inefficiencies and wastes. Specifically, as shown in Figure 1-2-49, about 40% of road transit time is spent in traffic jams, which equals to annual labor force of about 2.8 million persons.

Since large losses from traffic jams occur also in local regions as well as urban areas, according to the time lost in traffic jams by prefecture per population, it is thought that the resolution of losses from traffic jams will lead to productivity enhancement not only in urban areas, but also across Japan (Figure 1-2-50). Therefore, efforts to enhance society’s base productivity, which draw regional potentials to increase productivity of society as a whole, are important.
## Column

## Project of productivity revolution 13

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT), in order to promote strongly and collectively its measures for productivity revolution, has established the head office for the revolution within the ministry and is taking measures.

The MLIT has publicized projects that are expected to bring about a certain effect on productivity improvement and are sufficiently matured. As of April 2016, 13 projects have been published.

“Society bases”

(i) Pinpoint measures and (ii) wise tolls to solve traffic congestion

(iii) Ports and harbors in the new age of cruises

(iv) "Compact" and "Network"

(v) Optimal utilization of lands and real estates

“By industry”

(i) Construction industry, i-Construction

(ii) Housing and lifestyle industry

(iii) Shipbuilding industry, i-Shipping

(iv) Distribution industry

(v) Truck transportation industry

(vi) Tourism industry

“Future oriented” (i) Scientific road traffic safety measures

(ii) Overseas development of high-quality infrastructures considering growth cycles

Some projects are introduced here in some detail (Figure 1-2-51, 1-2-52, and 1-2-53).

Figure 1-2-51 "Society's Base" (iv) "Compact" and "Networks"

## “Society's Base”

## “Compact” and “Networked” - Improve Productivity with Economy of Density

国土交通省

○Increase the productivity of services industries significantly through realization of rapid reductions in transit time for visiting care and increased consumption in city centers by making cities, which are apparatuses for economic activities, compact and dense and improving convenience of public transportation.

○In doing so, realize optimum locations of facilities by analyzing activity of the elderly, child-rearing households and others using big data to revamp planning methods to incorporate users' points of view.

Create consolidated cities with certain density --Increase productivity of service industries--

Create towns where public transportation is easy to use --Reviving central urban areas--

Energize each of the elderly - Local fiscal consolidation-

A city with population of 0.3 million will see annual...

☑ Services per home care worker increase by 40% (* Estimated based on the mold of Toyama City)

☑ Increase consumption in the central urban area by 3 billion yen (*Estimated based on Toyama City's model.)

■ Reduce medical expenses needed by 1 billion yen (*Estimated by Mitsuke-shi's model)

○Improve efficiency of transit time take for visiting care (image)

(Source: Developed by the MLIT based on Toyama City's data)

Those who use public transportation spent long hours and spend money in cities.

Privately owned car	Public transportation
Average hours stayed in the central urban area (minute/day)	113 minutes	128 minutes
Ratio of persons who drop by at least two stores when visiting the city	30%	47%
Average consumption in the central urban area (yen/day/person)	9,207 yen	12,102 yen

Comparison between private car transportation users and public transportation users (Source: Toyama City's data)

Note: Figures are all estimated by using certain assumptions.
## Figure 1-2-52 "By Industry" (iii) Shipbuilding i-Shipping

## "By Industry"

## Expansion of shipbuilding exports and regional revitalization through i-Shipping

○Promote “i-Shipping” where ICTs are incorporated in all phases from development, building to operation of ships to increase shipbuilding productivity by 50% and aim to realize energy conservation and zero malfunction.

○Increase Japan’s share in the world shipbuilding market from 20% to 30%, contributing to GDP expansion, regional economy, and employment.

Current status and issues of shipbuilding

Won the world's No. 1 share in 1956, the largest share won being 50%

But, Japan still has chances to win.

Japan's share is expanding again amid sluggishness of competitors.

Issue: while Japan leads in productivity, its cost advantage is weak.

Energy-saving performance where Japan had advantages was copied and the difference is narrowing.

## Promote productivity revolution by using advanced information technology in all of design, production, and operation phases

Figure 1-2-53 "By Industry" (iv) Logistics Industry

## "By Industry"

## Logistics productivity revolution worked on with all-out efforts of Japan

- Various inefficiencies occurred in Japan’s logistics in recent years, such as the truck-loading ratio that declined to 41%. It is necessary to improve productivity to overcome future labor shortages and contribute to economic growth.

- To this end, promote (i) growth accelerating logistics, such as truck business reforms with cooperation of shippers and early realization of automated aligned group run, and (ii) logistics that enhance living through package deliveries that are easy to receive. Targets are being examined with the idea of increasing labor productivity in logistics business by about 20%.

## Situations surrounding Japan’s logistics

■ Almost 2 hours of waiting occur per run

(Source: 2015 field survey by Japan Tracking Association)

■ At least 70% of road trucks cannot enter indoor parking lots of 3 m high ceiling
(Correlation between accumulation of social capital and TFP--Answer to the Productivity Puzzle--)

While it is very important to build up productivity increases at project levels, various researches are conducted also on the productivity boosting effect of social capital stock accumulated by public investment (productivity effect), from a macroeconomic perspectives. Research using Japan’s data by prefecture has been conducted since the 1970s and such research progressed globally after the 1989 paper by Aschauer “Is Public Expenditure Productive?” Note $ ^{34} $ . The U.S. at that time did not know the cause for slowing pace of TFP growth after the 1970s (so-called “productivity puzzle”) Note $ ^{35} $ and the research hoped to produce an answer to that.

The paper by Aschauer carries the stacked bar graph of changes in TFP and net assets of social capital (assets less capital consumption) in the United States after 1950 (Figure 1-2-54). Although we cannot immediately conclude that the growth in social capital stock led to increased TFP based on the research results, it should be noted as indicating the productivity effect of social capital.

## (Productivity effect of social capital)

In Japan, there are multiple past researches on the productivity effect of social capital stock, and results of such research often show that development of social capital creates positive contributions (Figure 1-2-55).

Figure 1-2-55 Research Example of Productivity Effect of Social Capital in Japan

Researcher	Estimation period	Productivity Effect of Social Capital (value of elasticity)
Iwamoto (1990)	1955~1984	0.238~0.408
1955~1970	0.055~0.416
1971~1984	0.314~0.396
Takenaka, Ishikawa (1991)	1955~1985	0.2
Mitsui, Inoue (1995)	1956~1989	0.248~0.316
Hatano (1998)	1955~1995	0.296~0.328
1955~1989	0.317~0.324
1955~1984	0.316~0.318
Yoshino, Nakajima, Nakahigashi (1999)	1955~1970	0.203
1971~1993	0.079
1955~1993	0.4623
1955~1970	0.6487~0.8168 (Marginal productivity)
1971~1993	0.0842~0.2246 (Marginal productivity)
Mitsui, Takezawa, Kawauchi (1995)	1966~1984	0.142~0.214
Okui (1995)	1965	0.053~0.055
1970	-0.116~0.018
1975	-0.13~0.034
1980	-0.049~-0.259

Researcher	Estimation period	Productivity Effect of Social Capital (value of elasticity)
Asako, Sakamoto (1993)	1975~1985	0.159
1976~1985	0.065~0.144
1976~1984	0.116
1977~1985	0.055
1977~1984	0.177
Okui (1995)	1965~1980	0.072~0.243
Doi (1998)	1966~1993	-0.082
1975~1993	0.015
1985~1993	0.254
1966~1974	0.131
1975~1984	0.029
Shioji (2005)	1980~1995	-0.37~0.122

Source) Developed by the MLIT from Li, Hongmei (2010) "Literature study on productivity effect of public capital in Japan"
## Chapter 2

## Strategic Infrastructure Management That Brings About a Revolution in Productivity

Chapter 2: Strategic Infrastructure Management That Brings about a Revolution in Productivity discusses the relationship between infrastructure development and the activities by private sector firms more specifically by presenting the efforts aimed at improving productivity and maximizing stock effects, as well as through a survey of the awareness of private businesses toward infrastructure.

First, in Section 1: Aiming at maximizing the Stock Effect, we will focus on cases in which stock effect are apparent. It mainly introduces cases that affect economic activities of private companies and lead to productivity improvement, and the approaches for visualization taken to understand various stock effects generated by infrastructure, as well as the recent administrative measures of the Minister of Land for maximizing stock effects.

Next, in Section 2: Effective Development and Operation of Infrastructure Through Public-private Partnership, it introduces the creation of new demands in private sector through the utilization of PPP/PFI and the cases of effective infrastructure development and operation, as well as the useful cases of community development and the recent administrative measures of the Minister of Land.

In addition, in the Section 3: The Results of Opinion Poll and Analysis of Private Businesses, in order to examine the direction of infrastructure development from the perspective of private businesses, we conducted an awareness survey (questionnaires) targeting private businesses, who are the users of infrastructure. The aim was to clarify the involvement of corporate activities related to policy issues and infrastructure such as the improvement of productivity in tertiary industry, disaster preparedness, response to an aging population society and innovation activities, as well as what is needed for both infrastructure development and users to maximize stock effects such as productivity improvement.

## Section 1

## Aiming at Maximizing the Stock Effect

## 1 Examples of the realized stock effect

As described in Section 2, Chapter 1, infrastructure investment has two types of effects: the flow effect and the stock effect. The flow effect is a short-term effect that expands the aggregate economy by the public work itself, which derivatively creates production, employment, consumption and other economic activities. The stock effect, on the other hand, is realized in the medium-to-long term when the infrastructure is accumulated and functions as social capital. The stock effect includes “safety and security effect” such as prevention of damages from future earthquakes, and reduction of flood risks;

“effect of improving life quality” such as improvement of living conditions, amenity enhancement; and “effect of improving productivity” such as reduction of travel time which leads to enhancing the base of society (Figure 2-1-1).
Infrastructure investment leads to development of the regional economy and improvement of the living environment. In addition, the effective use of developed infrastructure can bring about a greater impact. The Priority Plan for Infrastructure Development (Cabinet decision in September 2015) classifies infrastructure into three categories according to its main purpose and function, including growth infrastructure, safe and secure infrastructure and life infrastructure. This section introduces examples in which infrastructure mainly affects economic activities of firms and contributes to the improvement of their productivity.

## (1) Growth infrastructure

## ■ Kita-Kanto Expressway

The Kita-Kanto Expressway runs from Takasaki City, Gunma, and the southern Tochigi to Hitachinaka City, Ibaraki. This National High-Grade Trunk Highways extends the entire length of 150 km and was completed in March 2011. In addition to the North-South axis toward Tokyo, this formed the East-West axis connecting Gunma, Tochigi and Ibaraki. From 2008 prior to the completion to 2013 after the completion, the volume of logistic transactions from Tochigi to Ibaraki increased by 48.3%, giving boost to the interaction of east and west (Figure 2-1-2).

In addition, there is a rapid development of industrial parks, corporations, and logistic warehouses mainly in the vicinity of IC. In 2014, Ibaraki ranked top for the number of establishment of new business facilities, followed by Gunma and Tochigi. As for the cumulative total value for the number of establishment, the growth is nearly double of national average (Figure 2-1-3). In terms of the area of establishment, Tochigi ranked top, followed by Ibaraki while Gunma ranked 7 $ ^{th} $ , indicating that three prefectures top the list.

Such an activation of economic activities in the northern Kanto region has a major effect on the Metropolitan Inter-City Expressway (Ken-O Expressway), which the development has been in progress. The expressway bus connecting Utsunomiya City, Tochigi and Narita International Airport changed its route to pass through the Ken-O Expressway and the Kita-Kanto Expressway, leading to the shortening of time by about 30 minutes and lower fares (about ¥200). In addition, in Nikko, a

tourist attraction in Tochigi, the completion of the Ken-O Expressway has an instant effect and started seeing an increased number of tourists from wide areas including Shonan and Shizuoka during the season of fall foliage in 2015.
In the vicinity of Mibu IC in Tochigi along the Kita-Kanto Expressway, FANUC Corporation, which has 50% of world shares in NC (numerical control) equipment machine tools, invested nearly ¥100 billion to build a new plant (to be opened in 2016). With the completion of Kita-Kanto Expressway and Ken-O Expressway, one of the reasons is to increase accessibility between the head office at the base of Mount Fuji, Yamanashi, and a plant located in Tsukuba City, Ibaraki. Even Tochigi has been working on developing four-lane roads in access roads to Mibu IC for the expansion of effect (Figure 2-1-4). A number of corporations building business establishments in Tochigi list the opening of the Kita-Kanto Expressway and Ken-O Expressway as a reason of expanding business, displaying a synergetic effect of developing the Kita-Kanto Expressway and Ken-O Expressway, as well as both infrastructures.

Figure 2-1-4

The vicinity of Mibu IC and a rendering of Mibu Plant of FANUC Corporation

Source) Developed by MLIT using the materials provided by Tochigi.

In addition, the local governments are not the only one who thought the opening of the Kita-Kanto Expressway as an opportunity for the activation of regional economy. The three banks including the Gunma Bank, Ltd. in Gunma, the Ashikaga Bank, Ltd. in Tochigi and the Joyo Bank, Ltd. in Ibaraki teamed up and held a business negotiation meeting for foods and exhibition of food and agriculture, titled Agri-Food Festival 2015 in Utsunomiya, with the aim of promoting interexchange among corporations that is centered on east and west. The survey conducted by The Ashikaga Bank, Ltd. revealed that many corporations actually feel economic effects from the completion such as shortened time and enlarged commercial sphere in local companies (Figure 2-1-5 and Figure 2-1-6).

Impact on the management due to the completion of Kita-Kanto Expressway (N = 1,116)
As described above, the impact of streamlining of the Kita-Kanto Expressway covers a broad range of topics. In the days to come, we can expect to see the expanded impact of streamlining by the efforts of regional economic vitalization taken by the local governments and financial institutions by taking advantage of infrastructure.

## Hokkaido Shinkansen

On March 26, 2016, the Hokkaido Shinkansen opened from Shin-Aomori and Shin-Hakodate Hokuto to allow traveling from Tokyo to Hakodate in nearly four hours. According to the Development Bank of Japan Inc., the economic effects of opening are calculated to be nearly ¥13.6 billion annually (published in October 2014), and the direct effects and ripple effects in tourism and business can be expected. In addition, the Seikan Tunnel (the common use started in March 1988) connecting Hokkaido and Aomori was designed with the standards in which new Shinkansen Line will run through in the future. With the completion of Hokkaido Shinkansen, this streamlining impact will be fully exerted.

For the opening, the development of secondary transit system advanced mainly in Hakodate and Sapporo. In order

Source) Japan Railway Construction, Transport and Technology Agency

to facilitate traveling from Shin Hakodate Hokuto Station, which is a new station, to the center of tourism, Hakodate Station (local line), a shuttle service connecting both stations, called the Hakodate Liner, was developed to serve all express trains in Hakodate Hokuto Station traveling to Sapporo. In addition, the South Hokkaido Isaribi Railway (Goryokaku to Kikonai) will be opened to serve tourist trains (Figure 2-1-8).
Hakodate Rolls, a Seikan joint plan product

As for the development of access roads connecting within Hakodate and the surrounding areas, as well as Sapporo, the landscape improvement along the train lines and the development of Michi-no-Eki (Roadside Station) provide the environment in which travelers can make a tour easily. According to the secondary transit population survey after the opening of Hokkaido Shinkansen (September 2014) implemented by the council of the Hokkaido Shinkansen Opening Strategic Promotion consisting of Hokkaido and financial circles, the results revealed that more than 50% of travelers from outside the prefecture use rental cars and buses for traveling, pushing forward the development of traffic line for users.

Also, in Aomori, Okutsugaru-Imabetsu Station was developed as the northernmost station in mainland Japan for Shinkansen. The adjacent Michi-no-Eki (Roadside Station) was also expanded and renovated as a transit base for users and re-opened for renovation in April 2015. This allowed the number of users to bump up from 20,000 users per year before renovation to 80,000 users in about six months after renovation.

Besides the improvement of structural aspects, there is also an active effort of promoting exchange between Hokkaido and Tohoku. Each travel company utilizes the benefits of railway that allow getting off on the way to plan new tours around Hokkaido and Tohoku with the use of Hokkaido Shinkansen. In addition, with the cooperation of the local Chamber of Commerce and Industry and financial institutions, the exchange among corporations has been advancing mainly in the tourism and food industry. North Pacific Bank Ltd. in Hokkaido and The Aomori Bank, Ltd. in Aomori established the Seikan Activation Fund as the public-private partnership fund for providing growth capital for corporations in Seikan area and offering management support in May 2014 for the development of new products using food ingredients from Hokkaido and Aomori (Figure 2-1-9).

Figure 2-1-9

Source) Hokkaido

For the inauguration of Hokkaido Shinkansen, it is expected to bring in economic effects in the tourism industry and the public-private partnership unites to brush up the regional attraction and to promote information dispatch in and out of Japan. In addition, by forming a large exchange sphere of Hokkaido and Tohoku, it is important to lead to the activation of economic activities and the improvement of regional attraction. The extension of Sapporo aims to be completed and opened by the end of 2030 $ ^{Note\ 36} $ . The effect of opening Shinkansen is expected to be maximized, giving a ripple effect throughout Hokkaido.
## • Nakatsu Port in Oita

In the northern part of Kyushu, the automotive industry is becoming more a key industry. The Nakatsu Port in Oita plays a central part to push forward the development of ports, harbors, and access roads. In 1999, since the Nakatsu Port was appointed as a key port and harbor, the area was developed as a logistic base by improving piers and it has been placed in service since 2004. At that same time, the Nakatsu-Hita Road connecting the Nakatsu Port and Higashi-kyushu Expressway was also built (Figure 2-1-11).

With the improvement of transportation infrastructure centering the ports, Daihatsu Motor Kyushu Co., Ltd. built a plant in Nakatsu Port. In 2004, the company moved its headquarters and began production. This also attracted the accumulation of automobile related industries, and from 2003 to 2014, the cargo volume of Nakatsu Port grew by nearly eightfold and the number of households in former Nakatsu City increased by about 1.2-fold, bringing major economic effects to the area (Figure 2-1-12). In addition, surrounding cities of Oita and Nakatsu Port are putting effort into the improvement of living environment such as support for human resources development and child care in order to facilitate the supply of human resources to the accumulative businesses and the promotion of settlement.

In March 2015, the Higashi-kyushu Expressway (Buzen IC to Usa IC) to directly connect the Nakatsu-Hita Road (Nakatsu Port to Higashi-kyushu Expressway), which creates an additional expectation to the development as a base of the automotive industry in Kyushu in the days to come.

## • Hososhima Port, Miyazaki and major ports

There are enormous amounts of forest resources in the mountains in Kyushu. Because of the recent increase of timber demands in East Asia and the correction of the tendency of rising yen, the lumber prices are on the rise to stimulate the start of new timber export businesses. Because of this situation, Hososhima Port and other ports and harbors in Kyushu see a steep increase of timber export to countries in East Asia, leading to the restoration of the forestry industry, maintenance, and creation of regional employment.

In the Hososhima Port, Miyazaki, a Japanese major lumber corporation, Chugoku Mokuzai Co., Ltd. made a foray to
expand the business in December 2014 and began shipping lumber across the country. Behind this background, the construction of plants in the Hososhima Port, which is adjacent to a timber supply area, brought down the cost of logistics and enabled the securement of a plant site within the port. Other reasons behind were that the port will enable exporting products in future and the development of expressways such as Higashikyushu Expressway advanced to create a preferred environment for corporations to expand their business.

Chugoku Mokuzai Co., Ltd., utilizes timber from Miyazaki to employ a comprehensive operation of lumber, processing and biomass power generation. The total capital investment is expected to be ¥40 billion and the number of new employees will be 300. Including the forestry businesses in the related industries, the company has been making a significant contribution to the regional employment (Figure 2-1-13 and 2-1-14).