Why has the Decline of Regional Industry Not Stopped in Japan?

In this article, I examine why the government, even under inclusive institutions, often chooses relatively easy policies, such as promoting the tourism industry—characterized by lower-than-average wages, a high proportion of non-regular employment, and low labor productivity—over more challenging policies like fostering advanced industries. Using regional economic policy as an example, I analyze this phenomenon through the lens of election systems and strategies. Specifically, I focus on the election and re-election strategies of local government leaders and the Shinzo Abe administration’s approach to consolidating power.