Throughout the country in Japan, a great many of policies were proposed to promote local prosperity in response to aging demographics of rural area and its faster loss rate of population. Among the rural area, many are agricultural society. In this thesis, we investigate the niche for these agricultural countries through the basis of spatial economics and also inspect the possibility using agriculture brand to boost the local prosperity. We focus our investigation on three major issues. The first one is why the agriculture brand is necessary for rustic prosperity. Second, facing the influence of home market effect, what are the conditions required establishing agriculture in remote rural area? Finally, agriculture brand brings what kind of economic benefits for rural area.
In this thesis, we refer to two actual examples in Japan, “One Village One Product movement (OVOP)” and “highway service area (HSA)”, and examine their economic benefits to remote rural area. The OVOP means that the producers actively sell their goods to consumers; on the contrary the HAS means that the consumers voluntarily come to buy goods. In location theory, both OVOP and HAS have completely different marketing approaches. We can apply forward and backward linkage effect to explain these two marketing approaches. In OVOP, it develops a variety of highly different goods and sells them via common logistics. The resultant industry aggregation and increasing employment are referred to as forward linkage effect. In HAS, on the other hand, consumers voluntarily come to buy local agricultural products, by which the transportation cost is effectively reduced. This refers o backward linkage effect, which elaborates the home market effect (i.e., the business is established near the market).