Decisions on regional allocation of public investment: the case of Japan

In this paper, the basic economic factors underlying government decisions on regional allocation of public investment will be examined in relation to the stages of economic development of Japan. We will show that the improvement of dualism in regional income inequality has been the most significant factor for decisions made since the 1950s, while the growth-oriented economic policy explains the regional allocation of public investment for the period from the late 1950s to the mid-1960s.