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Analysis on Bioeconomy’s Contribution to GDP: Evidence from Japan

Author

Listed:
  • Xuezhou Wen

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Daniel Quacoe

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Dinah Quacoe

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Kingsley Appiah

    (School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Bertha Ada Danso

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

Abstract

This study analyzes seven bioeconomy sectors with the aim of establishing the leading contributing sectors to gross domestic product (GDP), and also determines the future relationship between bioeconomy and the national economy in Japan. We use data from World Input–Output Database (WIOD), International Renewable Energy Agency (IRENA), and the World Bank Group for this analysis. First, we use principal component analysis (PCA) techniques to identify the bioeconomy sectors that contribute significantly to the national economy. We find through the PCA that all the bioeconomy sectors that we analyzed contribute almost uniformly and significantly to the national economy. We also find forestry and wood sectors to be the most significant contributing bioeconomy sectors. We use the autoregressive distributed lag (ARDL) bounds test to prove the existence of short-run and long-run relationships between bioeconomy and gross domestic product (GDP). We finally use the vector error correction Granger causality model to establish a bicausality between bioeconomy and GDP in the long-run, but not in the short-run.

Suggested Citation

  • Xuezhou Wen & Daniel Quacoe & Dinah Quacoe & Kingsley Appiah & Bertha Ada Danso, 2019. "Analysis on Bioeconomy’s Contribution to GDP: Evidence from Japan," Sustainability, MDPI, vol. 11(3), pages 1-17, January.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:712-:d:201804
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    References listed on IDEAS

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    6. Dinah Quacoe & Yusheng Kong & Daniel Quacoe, 2023. "Analysis of How Green Growth and Entrepreneurship Affect Sustainable Development: Application of the Quintuple Helix Innovation Model in the African Context," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    7. Wu, Wenchao & Hasegawa, Tomoko & Fujimori, Shinichiro & Takahashi, Kiyoshi & Oshiro, Ken, 2020. "Assessment of bioenergy potential and associated costs in Japan for the 21st century," Renewable Energy, Elsevier, vol. 162(C), pages 308-321.
    8. Sebasti'an Leavy & Gabriela Allegretti & Elen Presotto & Marco Antonio Montoya & Edson Talamini, 2024. "Measuring the bioeconomy economically: exploring the connections between concepts, methods, data, indicators and their limitations," Papers 2403.08886, arXiv.org.

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