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Empirical evidence of externalities of IT capital in Japan

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  • Yasuo Nakanishi

    (Senshu University, Department of Economics)

Abstract

We tested for the presence of IT capital externalities, based on a translog cost function framework applied to 10 Japanese manufacturing industries for the years 1974 to 1993. This framework allows us to test whether investment in IT capital in other industries reduces costs in a given industry. Our findings strongly suggest that externalities are prevalent in these manufacturing industries.

Suggested Citation

  • Yasuo Nakanishi, 2005. "Empirical evidence of externalities of IT capital in Japan," Economics Bulletin, AccessEcon, vol. 15(18), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-05o30004
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Externality;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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