Structural Decomposition Analysis Using Spectral Graph Theory and Its Application to the Energy Issue in Japan Yuko OSHITA1), Shigemi KAGAWA1), and Keisuke NANSAI2) 1) Kyushu University, 6-19-1 Hakozaki, Higashi-ku, Fukuoka 812-8581, Japan 2) National Institute for Environmental Studies of Japan, 16-2, Onogawa, Tsukuba, Ibaraki 305-0053, Japan Keywords: Oil price pressure, Spectral graph theory, Structural decomposition analysis, Input–output analysis ABSTRACT This paper presents a detection method reconciling input–output price analysis with spectral graph analysis, which is useful in partitioning a whole network into sub-networks under a certain cut criterion. The method is used to detect industrial clusters in Japan that have been influenced remarkably by the rapid increase in crude oil prices during 2000–2007. Furthermore, the structural decomposition analysis using the cluster information enables us not only to visualize the structural changes in the industrial clusters (i.e. costly influenced industrial clusters), but also to examine the effects of the changes in the inter-industry transactions within the clusters on the commodity prices. The empirical results obtained using the 1990–1995–2000 linked Input–Output Tables of Japan show that the Japanese economy at least in 1990 comprises 45 industry clusters largely influenced by the oil price rise. In addition, the clusters during 1990–2000, whose internal structural changes reduced the effects of the increased oil price, include Research and Development cluster, Cement cluster, Household air-conditioners cluster, Printing, Industrial Soda Chemicals cluster, Plate Making and Book Binding cluster, and others, which can be considered superior clusters. The Research and Development cluster are composed of many electric and machinery sectors, whose input structural changes causing a decrease in the oil price pressure contribute greatly to the reduction of the effects on the whole economy. Conversely, those clusters during 1990–2000, whose structural changes increased the effects of the rise in the oil price on the economy include Other Business Services cluster and Water Supply cluster. The former has added its pressure within the cluster and influence on the other clusters attributable to the development of an advanced information society. Corresponding author: Yuko OSHITA, Kyushu University, 6-19-1 Hakozaki, Higashi-ku, Fukuoka 812-8581, Japan, oshita-yuko@live.jp. 1. Introduction Crude oil is a scarce resource that is used for various products aside from petroleum products and the plastic products. The crude oil import rate of Japan is almost 100%. Domestic prices of goods and services are strongly affected by unstable import prices of crude oil. To reduce the effect of increased crude oil prices on production costs, Japanese firms have attempted to reduce the use of energy-intensive materials that use crude oil. However, it is also true that the efforts at the individual firm level and sector level have already reached their limits. This paper presents the argument about how to determine industrial groups which can reduce oil price pressures effectively. Although the Japan Standard Industrial Classification (JSIC), which is classified (defined) by similarities of production technologies and product functions, is used as the policy unit for example in case of providing subsidies for the promotion of saving energy and reducing oil price pressure (see Cabinet Office, Government of Japan, 2007), energy policy that is based on the JSIC does not give different industries incentives for mutual cooperation with the intention of reducing oil price pressure. An important problem is the manner in which we can objectively define the most effective policy units in the whole economy. To detect the appropriate industrial groups (industrial clusters), this paper reconciles input–output price analysis (e.g. Chapter 2 of Miller and Blair, 2009) using spectral graph analysis (e.g., Shi and Malik, 2000; Zhang and Jordan, 2008), which is useful in partitioning a network into sub-networks under a certain cut criterion and which detects industrial clusters in Japan that have been influenced remarkably by the rapid increase in the crude oil prices during 2000–2007. We propose the industrial clusters detected analytically using the proposed method as the energy policy units instead of using aggregated industrial sectors in JSIC codes. Furthermore, the structural decomposition analysis (Dietzenbacher and Los, 1998, Fujikawa et al., 2007; Hattori and Hitomi, 2007, Chapter 13 of Miller and Blair, 2009) using the cluster information from the reconciled analysis enables us not only to visualize structural changes in the industrial clusters, but also to examine the effects of changes in inter-industry transactions within the clusters on both commodity prices and the inflation rate in the whole economy. This paper is organized as follows. Section 2 formulates the proposed method. Section 3 provides data sources. Section 4 provides the results and discussions. Finally Section 5 concludes this paper. 2. Method In this section, we formulate the input–output price model and reconcile it with the spectral graph model. Then the structural decomposition analysis is conducted based on the information related to industrial clusters detected using the method described above. 2.1 Modified input–output price model Following the standard price model (see Chapter 2 of Miller and Blair, 2009), domestic commodity prices are estimated as p d (p m Am v)(I Ad ) 1 , where p d is the row vector of the domestic commodity prices, p m is the row vector of the imported commodity prices, A m signifies the input coefficient matrix for the imported commodities, v is the row vector of the value added, A d is the input coefficient matrix for the domestic commodities, and I is the identity matrix. Accordingly, if only the crude oil price (i.e., only the element of crude oil sector in the row vector of the imported commodity prices) rises, then the domestic prices influenced by the oil price increase can be estimated as pd* (pm*Am v)(I Ad )1 , where p m* denotes the row vector in which the rate of increase in crude oil price is added only to the crude oil sector and the value of other sectors is 1. Following Kagawa et al. (2009), we decompose the domestic input coefficient matrix belonging to both energy-related product sectors and non-energy sectors as follows. (1) Enegy Non energy Ad 0 Ae,d ne A e,d e A e,d ne 0 e,e A Non Energy 0 A d d Ad d A 0 A ne, e ne,ne ne,ne ne,e A1d Ad2 d Energy (2) Substituting eq. (2) into eq. (1) and transforming it, p d * can be reformulated as p d* (p m*A m v)(I LA1d )(I A d2 ) 1 , where L I A d 1 (3) represents the Leontief inverse matrix whose element lij denotes the direct and indirect input of commodity i required for one unit of the production of commodity j. Defining (p m* A m v)(I LA 1d ) from the right-hand side of eq. (3) as w , then w w j represents the pressure from crude oil prices placed on the domestic product prices in non-energy sectors j. Using Ŵ , which is the diagonal matrix of w j elements, we obtain the following eq. (4): ˆ (I A d2 ) 1 , NP d* W (4) where (I A d2 ) 1 represents the direct and indirect input coefficient matrix for non-energy sectors. Consequently, NP d* NPijd* is useful to represent the increase in payments from non-energy sector i to non-energy sector j, which results from the pressure associated with a hike in crude oil prices. 2.2 Reconciling modified price model with spectral graph model The matrix NP d* NPijd* in eq. (4) can be interpreted as a directed graph whose weights denote the effects of the increase in the crude oil price on the payments from non-energy sector i to non-energy sector j. To obtain information related to the total oil price pressure between non-energy sectors i and j, we further converted the directed weighted graph into a undirected weighted graph Q* qij* by adding the effect on the payment from non-energy sector i to non-energy sector j to the effect on the payment from non-energy sector j to non-energy sector i, if i j , as q ij* NPijd * NPjid * i j , (5) q ij* 0 i j . It is noteworthy that qij* is set to zero if i j . Here, the weighted degree of each sector (i.e. vertex) is computable as di j qij* . This study examines the case such that the graph Q* qij* shown in eq. (5) is partitioned into two sets A and B. For this study, we also define a cut criterion (cut value) as follows (see von Luxbrug, 2007). Cut( A, B) Cut( B, A) q*ij i A, jB q*ij j A,iB (6) Solving the minimization problem of eq. (6), we can find the two sets (i.e. two industrial clusters) such that the sum of weights (i.e. oil price pressures) of edges (i.e. intermediate transactions) between vertex i belonging to the set A (non-energy sector i belonging to the cluster A) and vertex j belonging to the set B (non-energy sector j belonging to the cluster B) is minimized. However, when the cut value in eq. (6) is employed and its minimization problem is solved, a vertex is well known to be detected as a set. For the mathematical problem, Shi and Malik (2000) proposed the normalized cut value (Ncut value) to avoid the undesired solution. The Ncut value can be formulated as follows. q x x d * ij Ncut( A, B) i i A, jB i i A Here, iA d i and iB q x x d * ij j i j A,iB j xi 1i A, xi 1i B (7) i iB d i express the sum of the weighted degrees of vertexes belonging respectively to sets A and B. They represent the respective cluster sizes of A and B. It is noteworthy that the numerator in the first term (second term) of the right-hand side of eq. (7) coincides with the first term (second term) of eq. (6). Therefore, in eq. (7), the clustering problem is to find the two sets A and B such that not only the cut value (the numerator) is minimized but also the sizes of both clusters (the denominator) are maximized simultaneously. This optimization problem implies, in terms of the economy, that sectors having trade relations that are under strong pressure from oil price increases belong to the same cluster. However, this problem is well known as an NP-complete problem. Then, Shi and Malik (2000) converted the indicator vector x xi in the eq. (7) into y i x bi x where b iA d i iB di is the size of cluster A relative to the size of cluster B, and i is the vector of unities and transformed eq. (7) into the following equivalent optimization problem (see p.890 of Shi and Malik (2000) for more details). Min . y yi 1, b T D Q y q y y y Dy d y * ij * i 2 j i j T i 2 i (8) i s.t. y T Di 0 Here, superscript T denotes the transpose of the vector, D is the diagonal matrix whose diagonal elements are weighted degrees di, and D Q* is often called a Laplacian matrix (see von Luxbrug, 2007). It is noteworthy that the Laplacian matrix D Q* can also be reformulated as GEG T , where G is the rotation matrix whose rows are indexed by the vertices and the whose columns are indexed by the edges such that each column corresponding to an edge (i, j) has an entry 1 in the row corresponding to i, an entry -1 in the row corresponding to j, and has zeros otherwise. In addition, E is the diagonal matrix whose kth diagonal element is the weight of kth edge between vertices i and j (see Chung, 1997). Consequently, we have the following relation: y T D Q* y y TGEG T y qij* yi y j . If yi is relaxed to take on ‘real value’, then eq. 2 i j (8) engenders the Rayleigh quotient of the generalized eigenvalue problem D Q y Dy , where * is the eigenvalue (see chapter 7 of Bellman (1997) for the Rayleigh quotient). It is evident that the smallest eigenvalue of the generalized eigenvalue problem is 0 and the eigenvector corresponding to the smallest eigenvalue is the unity vector i because, from the definitions of D and Q*, we have D Q i Di 0 , where 0 is the null vector. Accordingly, the optimum solution of the * generalized eigenvalue problem with the constraint yTDi=0 is the eigenvector corresponding to the second smallest eigenvalue. Considering two important features of the generalized eigenvalue problem––that the second eigenvector values corresponding to the vertices which belong to the same cluster take similar values and that the weighted average of the second eigenvector values is zero from the constraint yTDi=0––it can be understood that a network is partitioned into two sub-networks using information related to the sign of the second eigenvector values. More concretely, the vertices with the positive (negative) eigenvector values are grouped as a cluster. However, an important problem is that even if the graph is partitioned, the Ncut value might not be minimized. In this study, as in Shi and Malik (2000), we bi-partitioned the graph by finding the splitting point of the second eigenvector values such that Ncut is minimized. Industrial clusters with the higher oil price pressure were detected by recursively using the bipartition method (see Kagawa et al. (2010) for a detailed explanation of the algorithm of the recursive bipartition). The detected clusters are named a representative sector, which has the largest degree (i.e. the largest oil price pressure) in the cluster in question. 2.3 Structural Decomposition Analysis According to structural decomposition analysis (Dietzenbacher and Los, 1997, d* d* p 90 1998), p d * p 00 ––which represents the changes in the price vector of domestic goods and service, and which is affected by the oil price increase (as indicated in Eq. (1)) that occurred during 1990–2000––can be decomposed into four effects as shown in m* m* Eq. (9) below: the effect of p m* p 00 , which are changes in the import prices; the p 90 m m A 90 effect of A m A 00 , which are changes in the import coefficient; the effect of v v 00 v 90 , which are changes in the value added coefficient, and the effect of L L 00 L90 , which are changes in the input coefficient of direct and indirect domestic goods. Because the import prices in this study are identical in 1990 and 2000, the effect of changes in the import price is zero. p d * p 0d 0* p d 9 *0 m* m m* m p 00 A 00 v 00 L 00 p90 A 90 v 90 L90 1 m* m 1 p A L90 L 00 p m*A m L90 L 00 2 2 IP , Imported goods effects: pIG Import price effects : p 1 1 m* m m* m v L90 L 00 p90 A 90 v 90 p 00 A 00 v 00 L 2 2 Value added effects: pVA Leontief effects: pTE where subscripts 90 and 00 respectively denote 1990 and 2000, A m pm (9) m m A90 A00 , and 2 m m p90 p 00 . 2 Moreover, substituting the decomposition formula of the Leontief inverse matrix presented by the following Eq. (10) (see Dietzenbacher and Los, 1997, 1998) L 1 L90A d L00 L00A d L90 2 (10) for the fourth term of the right-hand side of eq. (9) enables estimation of the effects of changes in the input structure of domestic goods on the equilibrium price of ith sector, p TE piTE , as shown in Eq. (11) below. p TE 1 m* m m* m p90 A90 v 90 p 00 A 00 v 00 L90 A d L00 L00 A d L90 4 (11) And, the change of the rate of equilibrium price increase in the entire domestic market caused by oil price rise were estimated as shown below from eq. (9) by adding the weight of domestic output to p d * to obtain the weighted average. d* d* p d * ω 00p 00 ω 90p 90 1 1 d* d* ω p 90 p 00 ω 90 ω 00 p d * 2 2 1 1 d* d* ω p 90 p 00 ω 90 ω 00 p IP p IG p VA p TE 2 2 1 1 1 d* d* ω p 90 p 00 ω 90 ω 00 p IP ω 90 ω 00 p IG 2 2 2 p W p IP , (12) p IG 1 ω 90 ω 00 p VA 1 ω 90 ω 00 p TE 2 2 p VA pTE where ω 90 ω90, j ( ω 00 ω00, j ) is the weight row vector indicating the rate of the output of sector j in the total output in 1990 (2000), and ω ω 00 ω 90 . We obtained the weight row vector by using the sectoral outputs from the 1990 (2000) input-output table. This study will analyze, in particular, the effects of changes in the input structure of industrial clusters that are affected significantly by pressure from the oil price increase on commodity prices. The changes in the input coefficient of all industries that occurred d d d d d d during 1990–2000 are expressed as A A 00 A 90 (i.e., aij a00 a90 ). ij ij Therefore, the changes in the intermediate input coefficients among the sectors belonging to the kth cluster identified in Section 2.2 can be expressed as shown below. d d d i, j Cluster k aij a00 ij a90 ij A d a 0 i, j Cluster k ij d k (13) Accordingly, as in eq. (11), the effect of changes in the Leontief inverse matrix caused by changes in the intermediate input coefficients among the sectors belonging to the kth cluster on the equilibrium price of ith sector, p TE,k piTE,k , is obtainable from p TE,k 1 m* m m* m p90 A90 v 90 p 00 A 00 v 00 L90 A dk L 00 L 00 A dk L90 . 4 (14) The effects of changes in the internal input structure of the kth cluster on the rate of price increase can be finally estimated as shown below. p TE, k ωp TE, k , where, ω 1 ω 90 ω 90 . 2 (15) 3. Data The data used for this study are from 1990, 1995, and 2000-linked Input–Output Tables (395 sectors) published by the Japanese Ministry of Internal Affairs and Communications. In addition, the crude petroleum and natural gas sector was disaggregated into crude petroleum and natural gas sectors using 3EID data of National Institute for Environmental Studies of Japan. Energy-related product sectors in eq. (2) are Coal mining, Crude petroleum, Natural gas, Petroleum refinery products, Coal products, Electric power for commercial use, On-site power generation, Gas supply, and Steam and hot water supply. The other sectors are non-energy sectors. As in Kagawa et al. (2009), the rate of increase in the crude oil import price index (2.563) for 2000–2007 in the time series data of the Import Price Index published by the Bank of Japan was used to represent the rate of increase in crude oil import prices. Accordingly, the import product price vector, in which the price increase rate during 2000–2007 is only added to the crude oil sector and the value of the other sectors is zero, m* m* is set as p 90 or p 00 . 4. Results and discussion To analyze the effects of the crude oil price rise on the commodity prices, we redefined w (p m* A m v)(I LA1d ) in eq. (3) as w p m* A m (I LA1d ) by ignoring the value added effects and constructed NP d* NPijd* in eq. (4) as representing the oil price pressures in the payments from non-energy sector i to non-energy sector j and the undirected weighted graph Q* qij* shown in eq. (5).1 The maximum number of sectors comprising the cluster was set to 20.2 The industrial clusters in 1990 identified using the method in Section 2.2 were 45. Among these clusters, the first cluster that was firstly detected standing out from other industrial clusters, whose normalized cut value is the smallest (1.16), is the Marine Fisheries cluster (#1), which consists of seven sectors including #25 Marine Fisheries, #26 Marine Culture, #39 Frozen Fish and Shellfish, #40 Salted, Dried or Smoked Seafood, #41 Bottled or Canned Seafood, #42 Fish Paste, and #43 Other Processed Seafood (see Fig. 1.) The line (i.e. edge) thickness represents the strength of the pressure from a rise in the oil price; the absence of a line between sectors shows that no oil price pressure exists between those sectors. The vertex size signifies the size of the degree within the clusters in the sector. In this Fig.1, since #25 Marine Fisheries sector has the maximum degree within the cluster, this cluster is called Marine Fisheries cluster in this paper. 1 Vertices corresponding to a total of 14 sectors, including three – Liquid Crystal Elements (#235), Nursing Care (In-home) (#357), and Nursing Care (In-facility) (#358) – with zero output because of their nonexistence in 1990, two of scrap and byproduct sectors – Steel Scrap (#165) and Non-ferrous Metal Scrap (#179) –, and nine of the energy-related product sectors are excluded from the undirected weighted graph Q* qij* . 2 This study has adopted 20 as the maximum number of sectors constituting a cluster for the purpose of finding the most effective unit for adopting energy policy such as providing government subsidies. The sensitivity analysis associated with changes in this maximum number will be studied in the future. Setting the maximum number too large would require extensive government support, which would not only make budget management difficult, but would create drawbacks from the large scale of inter-sectoral collaboration in the industrial clusters. Setting the maximum number too small would only require small-scale government support, which, however, would limit the potential of inter-sectoral collaboration in the industrial clusters. For this reason, setting an appropriate maximum number is necessary. This Marine Fisheries cluster was also detected as the first cluster in 2000 which composes of industrial sectors same with the cluster in 1990, in contrast to many other clusters, which suggests that this cluster has a strongly-connected input-output structure from the point of view of oil price pressure. #26 Marine culture #43 Other processed seafood #39 Frozen fish and shellfish #42 Fish paste #40 Salted, dried or smoked seafood #25 Marine fisheries #41 Bottled or canned seafood Figure 1. Marine fisheries cluster (#1) in 1990. There are industrial clusters which comprise sectors forming a supply chain of raw materials, intermediate products, final products, and service businesses. Examples are the Paperboard cluster (#3) (Its constituent sectors are #95 Pulp, #96 Paper, #97 Paperboard, #98 Corrugated Cardboard, #99 Coated Paper and Building (Construction) Paper, #100 Corrugated Card Board Boxes, #101 Other Paper Containers, #102 Paper Textile for Medical Use, #103 Other Pulp, Paper and Processed Paper Products, #104 Newspapers, #106 Publishing, #319 Packing Services, and #394 Office Supplies) and the Cement cluster (#16) (Its constituent sectors are #29 Materials for Ceramics, #30 Gravel and Quarrying, #31 Crushed Stone, #140 Paving Materials, #152 Cement, #153 Ready Mixed Concrete, #154 Cement Products, #284 Public Construction of Roads, #285 Public Construction of Rivers, Drainages and Others, #286 Agricultural Public Construction, #287 Railway Construction, #288 Electric Power Facilities Construction, And #290 Other Civil Engineering and Construction). Figures 2 and 3 respectively depict the Paperboard cluster and the Cement cluster in 1990. The sectors comprising these clusters would not be grouped together based on the Standard Industrial Classification. Industrial alliances using aggregated industrial sectors in JSIC codes that forms groups based on similarity in industrial technology, however, differ completely in nature from the industrial alliances through a supply chain from raw material exploration to material production and processing, parts production, and final goods. The strength of the pressure from the rising oil price is an issue that should be resolved through collaborative efforts of the sectors with different technologies. The industrial clusters identified in this study are grouped according to the definite criteria of the strength of economic transactions involving the oil price pressure (see eq. (7)), which are thereby related to the supply chains. We found the clear difference between the constituent sectors of industrial clusters detected in this study and the Standard Industrial Classification and proposed the alternative energy policy units such as Marine Fisheries cluster including fisheries sector and food processing sector. #106 Publishing #100 Corrugated card board boxes #319 Packing services #96 Paper #103 Other pulp, paper and processed paper … #101 Other paper containers #97 Paperboard #394 Office supplies #99 Coated paper and building (construction) … #95 Pulp #104 Newspaper #102 Paper textile for … #98 Corrugated cardboard Figure 2. Paperboard cluster (#3) in 1990. 154 Cement products #31 Crushed stones #154 Cement products #288 Electric power facilities … #287 Railway construction #153 Ready mixed concrete #30 Gravel and quarrying #290 Other civil engineering and construction #286 Agricultural public construction #29 Materials for ceramics #140 Paving materials 284 Public construction of roads #285 Public construction… #284 Public construction of roads #152 Cement Figure 3. Cement cluster (#16) in 1990. The following describes the results of the structural decomposition analysis. This analysis used cluster information acquired using data from the 1990 Input–Output Table. First, the change of the rate of equilibrium price increase in the entire economy caused by oil price rise was p d* 0.0034 (see eq. (12)), and the influence of oil price pressure on the whole economy was moderated 0.34% during ten years between 1990 and 2000. The changes in the input structure of domestic goods and services contributed to reducing the rate of price increase influenced by the oil price rise and the effect was p TE 0.0013 (see eq. (12)). Similarly, the effect of changes in the import coefficient was p IG 0.0052 (see eq. (12)) and the effect of changes in the value added coefficient was p VA 0.0082 , revealing a contribution of changes in the value added coefficient direction to reduce the impact of rising oil prices, in the opposite the changes in the import coefficient increased the impact of rising oil prices.3 Secondly, the result of p TE piTE estimated with Eq. (11) indicates how the rate of increase in the equilibrium price of ith sector caused by the rising oil price shifted as a result of the changes in the input structure of the whole economy. If this value is negative, the rate of increase in the commodity price in question would have been lower in 2000 than in 1990 if a rise in the oil price equivalent to this oil price surge had occurred both in 1990 and in 2000, and vice versa. Those sectors indicating a particularly large negative value among all sectors are presented in Table 1. From the result, we found that the equilibrium prices of #227 Cellular Phones and #223 Personal Computers declined significantly because of 3 In this study, since the intermediate inputs of scraps and byproducts are excluded from the input structure and included in the value added category, the total effect p d * does not coincide with the sum of the four effects of p IP , p IG , p VA , and p TE . changes in the input structure of domestic goods and services. This might have resulted from the considerable control of the oil price pressure in the electric and machinery sectors enabled by rapid technological development and dematerialization through miniaturization. In contrast to Table 1, Table 2 presents the high-ranking sectors which have large positive value. From Table 2, it is remarkable that agriculture, forestry and fisheries sectors and ships sectors have been increasingly pressured from the higher oil price. This indicates that the cost structures of these sectors need to be monitored carefully. Table 1. Top 10 sectors for which the rate of equilibrium price caused by crude oil price rises decreases because of input structural change during 1990–2000 Rank No. Sector name 1 2 3 227 223 224 Change of the price of the sector including oil price pressure by structural change during 1990–2000 Cellular phones Personal computers Electronic computing equipment (except personal computers) 4 5 6 7 8 9 10 233 220 236 221 181 Integrated circuits 162 Ferro alloys 113 Petrochemical basic products Video recording and playback equipment Magnetic tapes and discs Household air-conditioners Optical fiber cables -3.095 -1.310 -0.949 -0.900 -0.716 -0.474 -0.379 -0.374 -0.341 -0.338 Table 2. Top 10 sectors for which the rate of equilibrium price caused by crude oil price rises increases because of input structural change in 1990–2000 Rank No. Sector name 1 2 3 255 Ships (except steel ships) 4 5 6 7 8 9 10 135 Agricultural chemicals 276 Tatami (straw matting) and straw products 71 Organic fertilizers, n.e.c. 254 Steel ships 251 Motor vehicle bodies 256 Internal combustion engines for vessels 332 Cable broadcasting 55 Animal oils and fats 277 Ordnance Change of the price of the sector including oil price pressure by structural change during 1990–2000 0.393 0.277 0.277 0.249 0.240 0.204 0.200 0.196 0.195 0.171 Table 3 presents the clusters which has the large negative value of p TE, k , the Leontief effect caused by the alteration of the intermediate input coefficient belonging to the clusters on equilibrium prices. In other words, Table 3 shows the clusters in which the changes in the input structures among the constituent sectors during 1990–2000 reduced the rate of price increase caused by rising oil prices. These clusters are mainly manufacturing clusters such as Cement cluster (#16), Household air-conditioners cluster (#34), Industrial Soda Chemicals cluster (#39). Research and Development cluster (#5), which most significantly reduces the effects on the whole economy is also dominated by manufacturing sectors. Figure 4 portrays a diagram of the Research and Development cluster detected using the 1990 Input–Output Table. Figure 5 is a diagram of the same cluster in 2000. Comparison of these two diagrams reveals narrowing of the lines among sectors––a decrease in the pressure from oil price increase––during 1990–2000. Substantial reduction in the pressure between #347 Research and Development and #223 Personal Computers, #224 Electronic Computing Equipment (except personal computers), and #227 Cellular phones is evident. Decrease in the pressure between #347 Research and Development and #227 Cellular Phones was particularly large, and the pressure decreased to approximately one-eleventh during 1990–2000. This might reflect the lower demand for Research and Development sector in Cellular phone sector and a decline in the pressure of Cellular phone sector itself attributable to its miniaturization and dematerialization. Consequently, the pressure from the rise in the oil price in this cluster decreased to approximately a third during 1990–2000. Furthermore, the marked easing of influence of the oil price increase on the whole economy achieved by this cluster is facilitated by the close trading relations of #347 Research and Development with a broad spectrum of other sectors.4 In other words, the oil price pressure reduced in this cluster spreads more widely to the entire economy through trading relations with other sectors. Table 4 presents the high-ranking clusters in which the changes in the input structure during 1990–2000 increased the rate of price increase caused by the rise in oil prices. These clusters require attention because they include many service businesses such as Other business services cluster (#26), Wholesale trade cluster (#35) and Water supply cluster (#42). Figures 6 and 7 respectively represent the diagrams of the Other Business Services cluster in 1990 and 2000 whose input structural changes increased the rate of price increase attributable to the rising crude oil price to the largest. These diagrams present a particularly large increase in the pressure between #362 Information Services and the other sectors. Actually, #372 Other Business Services, in which the total pressure with other sectors in this cluster comprise slightly less than 30% of all pressure in this cluster, reduced its pressure with other sectors to approximately 70% during 1990–2000, whereas #362 Information Services comprising 10% of the pressure in this cluster increased the pressure with other sectors to approximately 1.2 times. This increase can be considered to reflect the increased demand for information services to accommodate the rapid progress of advanced information society. As a results, the pressure in this cluster increased by approximately 10% during 1990–2000. For the Aluminum cluster (#7) (see Fig. 8), because most constituent sectors of the cluster are automobile-related sectors, cooperation provided by the automobile sector such as joint investment and development not only for the energy conservation in the manufacturing process of aluminum products such as aluminum wheels required in 4 According to Kagawa et al. (2009), the size of the outdegree of #347 Research and Development Cluster sector, which functions as an indicator of how many sectors are affected by the increase in the oil price, ranked fourth among the 395 sectors (in the structure of year 2000). automobile manufacturing, but for new material development using aluminum requiring less environmental burden would be an effective in easing the impact on the whole economy. Table 3. Top 5 clusters decreasing the rate of the price increase because of oil price rise by input structural change within the cluster during 1990–2000 Crude oil rise influence on the Rank Industrial cluster name inflation rate by structural change in the cluster during 1990–2000 1 2 3 4 Research and development cluster (#5) Cement cluster (#16) Household air-conditioners cluster (#34) Industrial soda chemicals cluster (#9) -0.00766 -0.00083 -0.00078 -0.00077 5 Printing, plate making, and book binding cluster (#39) -0.00077 Table 4. Top 5 clusters increasing the rate of the price increase because of oil price rise by input structural change in the cluster during 1990–2000 Crude oil rise influence on the Rank Industrial cluster name inflation rate by structural change in the cluster during 1990–2000 1 Other business services cluster (#26) 0.00295 2 3 4 5 0.00114 0.00087 0.00074 0.00056 Wholesale trade cluster (#35) Water supply cluster (#42) Aluminum cluster (#7) Pig iron cluster (#30) #228 Radio communication … #227 Cellular phones #229 Other communication … #226 Wired communication equipment #230 Applied electronic equipment #225 Electronic computing equipment… #224 Electronic computing equipment… #231 Electric measuring instruments #232 Semiconductor devices #223 Personal computers #233 Integrated circuits #220 Video recording and playback … #237 Other electronic components #247 Other electrical devices … #347 Research and … #219 Radio and television sets #218 Electric audio equipment #216 Other office machines #204 Industrial robots Figure 4. Research and development cluster in 1990. #228 Radio communication … #227 Cellular phones #229 Other communication … #230 Applied electronic equipment #231 Electric measuring instruments #232 Semiconductor devices #225 Electronic computing equipment… #224 Electronic computing equipment… #223 Personal computers #233 Integrated circuits #220 Video recording and playback … #237 Other electronic components #247 Other electrical devices … #347 Research and … #226 Wired communication equipment #219 Radio and television sets #218 Electric audio equipment #216 Other office machines #204 Industrial robots Figure 5. Research and development cluster in 2000. #354 Social insurance … #362 Information services #353 Social insurance (public) #364 Goods rental and leasing … #340 Other educational and training … #368 Building maintenance services #337 Public administration (local) #372 Other business services #328 Telecommunication #326 Travel agency and other services relating … Figure 6. Other business services cluster in 1990. #354 Social insurance … #362 Information services #353 Social insurance (public) #364 Goods rental and leasing … #340 Other educational and training … #368 Building maintenance services #337 Public administration (local) #372 Other business services #328 Telecommunication #326 Travel agency and other services relating … Figure 7. Other business services cluster in 2000. #248 Passenger motor cars #177 Aluminum (inc. regenerated aluminum) #183 Rolled Rolled and and drawn drawn aluminum aluminum #183 #183 Rolled and drawn aluminum #252 Internal combustion engines for … #246 Electrical equipment for internal combustion … #184 Non-ferrous metal castings … #249 Trucks, buses and other cars #250 Two-wheel motor vehicles #253 Motor vehicle parts and accessories Figure 8. Aluminum cluster in 1990. 5. Conclusion This paper proposed a detection method reconciling input–output price analysis with spectral graph analysis and demonstrated that industrial clusters with strong oil price pressure have a sector composition that differs considerably from the Japan Standard Industrial Classification. Some clusters are formed as a supply chain, which could not be grouped together according to the Standard Industrial Classification. For situations in which the efforts of individual companies and industries are reaching their limit, measures must be taken using units that are based not only on similarity in production technology but on the criteria that are defined by factors related to demand and supply relations and issues (e.g. the strength of economic relations involving oil price pressure) in an attempt to achieve more efficient reduction of the pressure from the rising oil price and effective use of crude oil. The industrial clusters identified in this study represent one form of policy unit. The clustering method formulated in this study is also effective for detecting the CO2 intensive, energy intensive, and resource intensive industrial groups. Another important finding was that the changes in the input structure of domestic goods and services during 1990–2000 eased the impact of the oil price increase throughout the whole economy. Especially, the Research and Development cluster, Cement cluster, Industrial Soda Chemicals cluster, and Printing, Plate Making and Book Binding cluster contributed to reducing the effect of the increasing oil price because of internal structural changes within the clusters. Among them, the Research and Development cluster was composed of many electric and machinery sectors, whose input structural changes causing a decrease in the oil price pressure contribute greatly to the reduction of the effects on the economy. Conversely, the Other Business Services cluster and Water Supply cluster increased the effects of the oil price rise on the economy because of inputl structural changes within the clusters during 1990–2000. The former was increased the pressure within the cluster and influence on the other clusters through the development of advanced information society in Japan. At present, when economic transactions are forming complex networks, reducing the use of crude oil is not an issue that affects only a single sector or industry. Forming an alliance of the industrial clusters identified in this study enables the efficient reduction of oil price pressures. Analyzing the changes occurring over time such as an increase and decrease in the oil price pressure using units called industrial clusters enables identification and sharing of responsibilities. For instance, in a cluster in which the oil price pressure is neither decreasing nor increasing, transactions with sectors under substantial oil price pressure and sectors in which the oil price pressure is not changing or increasing are identifiable as targets for improvement. Furthermore, cooperation among sectors belonging to the same cluster would be effective for such improvement. Reference literature 1) Bellman, R., 1997. “Introduction to Matrix Analysis: Second Edition,” Society for Industrial and Applied Mathematics. 2) Cabinet Office, Government of Japan, 2007. Report of the Ministerial Meeting on Emergency Measures Concerning the Sharp Increase in the Price of Crude Oil and Subcontractors and Small and Medium-sized Enterprise (in Japanese). 3) Chung, F., 1998. Spectral Graph Theory, American Mathematical Society. 4) Dietzenbacher, E. and Los, B. (1997): Analyzing Decomposition Analysis, in: A. Simonovits and A.E. Steenge (eds.), Prices, Growth and Cycles, pp.108-131 (London, Macmillan). 5) Dietzenbacher, E. and Los, B., 1998. “Structural Decomposition Techniques: Sense and Sensitivity,” Economic Systems Research, vol.10, no.10, pp.307-323. 6) Feser, E. and Bergman, E., 2000. “National Industry Cluster Templates: A Framework for Applied Regional Cluster Analysis,” Regional Studies, vol.34, no.1, pp.1-19. 7) Freeman, C.L., 1978. “Centrality in Social Networks: Conceptual Clarification,” Social Networks, vol.1, no.3, pp.215-239, 1978. 8) Fujikawa, K., Shimoda, M., and Watanabe, T., 2007. “A comparative analysis on ripple effect of imported oil price hike in domestic prices between Japan and the USA,” Journal of Socio Economic Research, no.55, pp.45-62. 9) Ghosh, S. and Roy, J., 1998. “Qualitative Input–Output Analysis of the Indian Economic Structure,” Economic Systems Research, vol.10, no.3, pp.263-274. 10) Hattori, T. and Hitomi, K., 2007. “Japanese Industrial Prices Fluctuation in Soaring Oil Prices Period – Comparative Analysis of Soaring Oil Price Period since 2002 and Oil Crisis Period by Polar Decomposition Method –,” Journal of Socio Economic Research, no.55, pp.63-80. 11) Kagawa, S., Kondo, Y., Nansai, K., Oshita, Y. and Suh, S., 2010. “Detecting Energy Clusters from the Product Supply Chain: Spectral Clustering Approach,” Working paper. 12) Kagawa S., Oshita Y., Nansai K., Sangwon S., 2009. “How Has Dematerialization Contributed to Reducing Oil Price Pressure?: A Qualitative Input–Output Analysis for the Japanese Economy during 1990-2000,” Environmental Science & Technology, vol.43, no.2, pp.245-252. 13) Miller, R.E, and Blair, P.D., 2009. “Input–Output Analysis: Foundations and Extensions,” Cambridge University Press, Cambridge. 14) Muniz, A., Raya, A. and Carvajal, C., 2008. “Key Sectors: A New Proposal from Network Theory,” Regional Studies, vol.42, no.7, pp.1-18. 15) OECD, 2004. “Oil Price Drivers, Economic Consequences and Policy Responses,” OECD Economic Outlook, No. 76. 16) Oosterhaven, J., Eding, G. and Stelder, D., 2001. “Cluster, Linkages and Interregional Spillover: Methodology and Policy Implications for the Two Dutch Mainports and the Rural North,” Regional Studies, vol.35, no.9, pp.809-822. 17) Shi, J. and Malik, J., 2000. “Normalized Cut and Image Segmentation,” IEEE Transactions on Pattern Analysis and Machine Intelligence, vol.22, no.8, pp.888-905. 18) von Luxburg, U.,2007. “A tutorial on spectral clustering,” Statistics and Computing, vol.17, no.4, pp.395-416. 19) Zhang, Z. and Jordan, M., 2008. “Multiway Spectral Clustering: A Margin-based Perspective,” Statistical Science, vol.23, no.3, pp. 383–403. Appendix 1. Selected cluster diagrams in 1990. #112 Other industrial inorganic … #129 Medicaments #108 Industrial soda chemicals #119 Oil and fat industrial chemicals #350 Medical services (medical … #348 Medical services (public) #127 Rayon and acetate #296 Industrial water supply #349 Medical services (non-profit... #111 Salt #149 Sheet glass and… #69 Manufactured ice #134 Photographic sensitive … Industrial soda chemicals cluster (#9) #163 Crude steel (converters) #161 Pig iron Pig iron cluster (#30) #282 Non-residential construction (non-wooden) #245 Wiring devices and … #272 Musical instruments #267 Professional and scientific instruments #262 Bicycles #221 Household air-conditioners #395 Activities not elsewhere… #274 Stationery #210 Semiconductor making equipment #289 Telecommunication facilities construction Household air-conditioners cluster (#34) #270 Toys and games #300 Wholesale trade #159 Abrasive #278 Miscellaneous manufacturing products #275 Jewelry and adornments #280 Residential construction (non-wooden) #171 Cast iron pipes and tubes #314 Coastal and inland water transport #86 Bedding #367 Repair of machines #215 Copy machine #222 Household electric appliances … #281 Non-residential construction (wooden) #198 Refrigerators and air conditioning … #150 Glass fiber and glass fiber products … #255 Ships … #266 Watches and clocks #268 Analytical instruments, testing machines, … Wholesale trade cluster (#35) #360 Private non-profit institutions … #369 Judicial, financial and … #344 Research institutes … #308 Railway transport (passengers) #311 Hired car and taxi transport #83 Woven fabric apparel #303 Life insurance #334 Public administration (local) #298 Waste management services (public) #302 Financial services #105 Printing, plate making and book binding #376 Amusement and recreation … #370 Civil engineering and construction … #391 Miscellaneous repairs, n.e.c. #304 Non-life insurance #359 Private non-profit institutions serving ... #81 Fabricated textiles for medical use #342 Research institutes… #345 Research institutes… Printing, plate making, and book binding cluster (#39) #295 Water supply #341 Research institutes for natural science (public) #388 Public baths #336 School education (private) #385 Cleaning, laundry and dyeing services #355 Social welfare (public) #356 Social welfare (private, … #390 Ceremonial occasions #297 Sewage disposal #299 Waste management services … #322 Services relating to water transport #335 School education (public) #383 Eating and drinking places for… #351 Health and hygiene (public) #339 Other educational … #384 Hotels and other lodging places #352 Health and hygiene (profit-making) Water supply cluster (#42) Appendix 2. Sector classification. No. Sector Name No. Sector Name 1 Rice 32 Other non-metallic ores 2 Wheat, barley and the like 33 Coal mining 3 Potatoes and sweet potatoes 34 Crude petroleum 4 Pulses Natural gas 5 Vegetables 35 Slaughtering and meat processing 6 Fruits 36 Processed meat products 7 Sugar crops 37 Bottled or canned meat products 8 Crops for beverages 38 Dairy farm products 9 Other edible crops 39 Frozen fish and shellfish 10 Crops for feed and forage 40 Salted, dried or smoked seafood 11 Seeds and seedlings 41 Bottled or canned seafood 12 Flowers and plants 42 Fish paste 13 Other inedible crops 43 Other processed seafood 14 Dairy cattle farming 44 Grain milling 15 Hen eggs 45 Flour and other grain milled products 16 Fowl and broilers 46 Noodles 17 Hogs 47 Bread 18 Beef cattle 48 Confectionery 19 Other livestock 49 Bottled or canned vegetables and fruits 20 Veterinary service 50 21 Agricultural services (except veterinary service) Preserved agricultural foodstuffs (other than bottled or canned) 51 Sugar 22 Silviculture 52 Starch 23 Logs 53 Dextrose, syrup and isomerized sugar 24 Special forest products (inc. hunting) 54 Vegetable oils and meal 25 Marine fisheries 55 Animal oils and fats 26 Marine culture 56 Condiments and seasonings 27 Inland water fisheries and culture 57 Prepared frozen foods 28 Metallic ores 58 Retort foods 29 Materials for ceramics 59 Dishes, sushi and lunch boxes 30 Gravel and quarrying 60 School lunch (public) 31 Crushed stone 61 School lunch (private) No. Sector Name No. Sector Name 62 Other foods 88 Timber 63 Distilled alcohol 89 Plywood 64 Beer 90 Wooden chips 65 Whiskey and brandy 91 Other wooden products 66 Other liquors 92 Wooden furniture and fixtures 67 Tea and roasted coffee 93 Wooden fixtures 68 Soft drinks 94 Metallic furniture and fixture 69 Manufactured ice 95 Pulp 70 Feeds 96 Paper 71 Organic fertilizers, n.e.c. 97 Paperboard 72 Tobacco 98 Corrugated cardboard 73 Fiber yarns 99 74 75 76 Cotton and staple fiber fabrics (inc. fabrics of synthetic spun fibers) Silk and artificial silk fabrics (inc. fabrics of synthetic filament fibers) Woolen fabrics, hemp fabrics and other fabrics 77 Knitting fabrics 78 Yarn and fabric dyeing and finishing (processing on commission only) Coated paper and building (construction) paper 100 Corrugated card board boxes 101 Other paper containers 102 Paper textile for medical use 103 Other pulp, paper and processed paper products 104 Newspapers Printing, plate making and book 79 Ropes and nets 105 80 Carpets and floor mats 106 Publishing 81 Fabricated textiles for medical use 107 Chemical fertilizer 82 Other fabricated textile products 108 Industrial soda chemicals 83 Woven fabric apparel 109 Inorganic pigment 84 Knitted apparel 110 Compressed gas and liquefied gas 85 Other wearing apparel and clothing accessories binding 111 Salt 86 Bedding 112 Other industrial inorganic chemicals 87 Other ready-made textile products 113 Petrochemical basic products No. 114 Sector Name Petrochemical aromatic products (except synthetic resin) No. Sector Name 143 Rubber footwear 115 Aliphatic intermediates 144 Plastic footwear 116 Cyclic intermediates 145 Other rubber products 117 Synthetic rubber 146 Leather footwear 118 Methane derivatives 147 Leather and fur skins 119 Oil and fat industrial chemicals 148 Miscellaneous leather products 120 Plasticizers 149 Sheet glass and safety glass 121 Synthetic dyes 150 122 Other industrial organic chemicals 151 Other glass products 123 Thermo-setting resins 152 Cement 124 Thermoplastics resins 153 Ready mixed concrete 125 High function resins 154 Cement products 126 Other resins 155 Pottery, china and earthenware 127 Rayon and acetate 156 Clay refractories 128 Synthetic fibers 157 Other structural clay products 129 Medicaments 158 Carbon and graphite products 130 131 Soap, synthetic detergents and surface active agents Cosmetics, toilet preparations and dentifrices Glass fiber and glass fiber products, n.e.c. 159 Abrasive 160 Miscellaneous ceramic, stone and clay products 132 Paint and varnishes 161 Pig iron 133 Printing ink 162 Ferro alloys 134 Photographic sensitive materials 163 Crude steel (converters) 135 Agricultural chemicals 164 Crude steel (electric furnaces) 136 Gelatin and adhesives 165 Steel scrap 137 Other final chemical products 166 Hot rolled steel 138 Petroleum refinery products (inc. greases) 167 Steel pipes and tubes 139 Coal products 168 Cold-finished steel 140 Paving materials 169 Coated steel 141 Plastic products 170 Cast and forged steel 142 Tires and inner tubes 171 Cast iron pipes and tubes No. Sector Name No. Sector Name 172 Cast and forged materials (iron) 196 Engines 173 Iron and steel shearing and slitting 197 Conveyors 174 Other iron or steel products 198 175 Copper 199 Pumps and compressors 176 Lead and zinc (inc. regenerated lead) 200 Machinists' precision tools 177 Aluminum (inc. regenerated aluminum) 201 Refrigerators and air conditioning apparatus Other general industrial machinery and equipment Machinery and equipment for 178 Other non-ferrous metals 202 179 Non-ferrous metal scrap 203 Chemical machinery 180 Electric wires and cables 204 Industrial robots 181 Optical fiber cables 205 Metal machine tools 182 Rolled and drawn copper and copper alloys 183 Rolled and drawn aluminum 184 Non-ferrous metal castings and forgings construction and mining 206 Metal processing machinery 207 Machinery for agricultural use 208 Textile machinery 185 Nuclear fuels 209 Food processing machinery 186 Other non-ferrous metal products 210 Semiconductor making equipment 187 Metal products for construction 211 188 Metal products for architecture 212 Metal molds 189 Gas and oil appliances and heating and cooking apparatus 190 Bolts, nuts, rivets and springs 191 192 Metal containers, fabricated plate and sheet metal Plumber’s supplies, powder metallurgy products and tools Other special machinery for industrial use 213 Bearings 214 Other general machines and parts 215 Copy machines 216 Other office machines 193 Other metal products 217 Machinery for service industry 194 Boilers 218 Electric audio equipment 195 Turbines 219 Radio and television sets No. 220 Sector Name Video recording and playback equipment 221 Household air-conditioners 222 Household electric appliances (except air-conditioners) 223 Personal computers 224 225 Electronic computing equipment (except personal computers) Electronic computing equipment (accessory equipment) No. Sector Name 244 Electric bulbs 245 Wiring devices and supplies 246 Electrical equipment for internal combustion engines 247 Other electrical devices and parts 248 Passenger motor cars 249 Trucks, buses and other cars 226 Wired communication equipment 250 Two-wheel motor vehicles 227 Cellular phones 251 Motor vehicle bodies 228 Radio communication equipment (except cellular phones) 252 Internal combustion engines for motor vehicles and parts 229 Other communication equipment 253 Motor vehicle parts and accessories 230 Applied electronic equipment 254 Steel ships 231 Electric measuring instruments 255 Ships (except steel ships) 232 Semiconductor devices 256 233 Integrated circuits 257 Repair of ships 234 Electron tubes 258 Rolling stock 235 Liquid crystal elements 259 Repair of rolling stock 236 Magnetic tapes and discs 260 Aircrafts 237 Other electronic components 261 Repair of aircraft 238 Rotating electrical equipment 262 Bicycles 239 Relay switches and switchboards 263 Other transport equipment 240 Transformers and reactors 264 Cameras 241 Other industrial heavy electrical equipment 265 Internal combustion engines for vessels Other photographic and optical instruments 242 Electric lighting fixtures and apparatus 266 Watches and clocks 243 Batteries 267 Professional and scientific instruments No. 268 Sector Name Analytical instruments, testing machines, measuring instruments No. Sector Name 296 Industrial water supply 269 Medical instruments 297 Sewage disposal 270 Toys and games 298 Waste management services (public) 271 Sporting and athletic goods 299 Waste management services (private) 272 Musical instruments 300 Wholesale trade 273 Audio and video records, other information recording media 301 Retail trade 274 Stationery 302 Financial services 275 Jewelry and adornments 303 Life insurance 276 "Tatami" (straw matting) and straw products 304 Non-life insurance 277 Ordnance 305 Real estate agencies and managers 278 Miscellaneous manufacturing products 306 Real estate rental services 279 Residential construction (wooden) 307 House rent 280 Residential construction (non-wooden) 308 Railway transport (passengers) 281 Non-residential construction (wooden) 309 Railway transport (freight) 282 Non-residential construction (non-wooden) 310 Bus transport service 283 Building renovation and repair 311 Hired car and taxi transport 284 Public construction of roads 312 Road freight transport 285 Public construction of rivers, drainages and others 313 Ocean transport 286 Agricultural public construction 314 Coastal and inland water transport 287 Railway construction 315 Harbor transport services 288 Electric power facilities construction 316 Air transport 289 290 Telecommunication facilities construction Other civil engineering and construction 317 Freight forwarding 318 Storage facility services 291 Electric power for commercial use 319 Packing services 292 On-site power generation 320 Facility services for road transport 293 Gas supply 321 Port and water traffic control 294 Steam and hot water supply 322 Services relating to water transport 295 Water supply 323 Airport and air traffic control (public) No. Sector Name 324 Airport and air traffic control (industrial) 325 Services relating to air transport 326 Travel agency and other services relating to transport No. Sector Name 345 346 347 Research institutes for natural sciences (profit-making) Research institutes for cultural and social sciences (profit-making) Research and development (intra-enterprise) 327 Postal services 348 Medical services (public) 328 Telecommunication 349 329 Other services relating to communication 350 Medical services (non-profit foundations, etc.) Medical services (medical corporations, etc.) 330 Public broadcasting 351 Health and hygiene (public) 331 Private broadcasting 352 Health and hygiene (profit-making) 332 Cable broadcasting 353 Social insurance (public) 333 Public administration (central) 354 Social insurance (private, non-profit) 334 Public administration (local) 355 Social welfare (public) 335 School education (public) 356 Social welfare (private, non-profit) 336 School education (private) 357 Nursing care (In-home) 337 Social education (public) 358 Nursing care (In-facility) 338 Social education (private, non-profit) 359 339 340 341 342 343 344 Other educational and training institutions (public) Other educational and training institutions (profit-making) Research institutes for natural science (public) Research institutes for cultural and social sciences (public) Research institutes for natural sciences (private, non-profit) Research institutes for cultural and social sciences (private, non-profit) 360 Private non-profit institutions serving enterprises Private non-profit institutions serving households, n.e.c. 361 Advertising services 362 Information services 363 364 News syndicates and private detective agencies Goods rental and leasing (except car rental) 365 Car rental and leasing No. Sector Name No. Sector Name General eating and drinking places 366 Repair of motor vehicles 381 367 Repair of machines 382 Coffee shops 368 Building maintenance services 383 Eating and drinking places for pleasure 369 370 Judicial, financial and accounting services Civil engineering and construction services (except coffee shops) 384 Hotels and other lodging places 385 Cleaning, laundry and dyeing services 371 Worker dispatching services 386 Barber shops 372 Other business services 387 Beauty shops 373 Motion picture and video production and distribution 388 Public baths 374 Movie theaters 389 Photographic studios 375 Theaters and entertainment facilities 390 Ceremonial occasions 376 Amusement and recreation facilities 391 Miscellaneous repairs, n.e.c. 377 378 Stadiums and companies of bicycle, horse, motorcar and motorboat races Sport facility services, public gardens and amusement parks 379 Theatrical companies 380 Other amusement and recreation services 392 Places for private lessons 393 Other personal services 394 Office supplies 395 Activities not elsewhere classified