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Input-Output Decomposition Analysis of Sectoral Price Gaps between Japan and China

Author

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  • Kiyoshi Fujikawa
  • Carlo Milana

Abstract

Sectoral price gaps that were observed in 1990 between Japan and China are studied in this paper by using a decomposition procedure within the input-output framework. The empirical results show that Japan exhibited producer prices that were higher than those observed in China mainly because it registered higher wages that were only partially offset by higher productivity. The effects on output cost gaps of primaryinput price differences and relative productivity levels are analysed. The effects arising from the use of direct inputs as well as the indirect effects that are incorporated into the difference of intermediate-input prices are accounted for by means of an input-output decomposition technique.

Suggested Citation

  • Kiyoshi Fujikawa & Carlo Milana, 2002. "Input-Output Decomposition Analysis of Sectoral Price Gaps between Japan and China," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 59-79.
  • Handle: RePEc:taf:ecsysr:v:14:y:2002:i:1:p:59-79
    DOI: 10.1080/09535310220111824
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    Citations

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    Cited by:

    1. Wang, Tao & Xiao, Shiying & Yan, Jun & Zhang, Panpan, 2021. "Regional and sectoral structures of the Chinese economy: A network perspective from multi-regional input–output tables," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 581(C).
    2. Hong, Jae Pyo & Byun, Jeong Eun & Kim, Pang Ryong, 2016. "Structural changes and growth factors of the ICT industry in Korea: 1995–2009," Telecommunications Policy, Elsevier, vol. 40(5), pages 502-513.
    3. Paul De Boer, 2008. "Additive Structural Decomposition Analysis and Index Number Theory: An Empirical Application of the Montgomery Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 97-109.
    4. Eder, Andreas & Koller, Wolfgang & Mahlberg, Bernhard, 2019. "Price Competitiveness in the European Monetary Union: A Decomposition of Inflation Differentials based on the Leontief Input-Output Price Model for the Period 2000 to 2014," MPRA Paper 95158, University Library of Munich, Germany.
    5. Maciej Grodzicki, 2018. "Prices of Value Added and Competitiveness in Global Value Chains," SPRU Working Paper Series 2018-14, SPRU - Science Policy Research Unit, University of Sussex Business School.

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