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Economic Growth of Japan and the United States in the Information Age

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Author Info
Dale W. Jorgenson
Kazuyuki Motohashi

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Abstract

In this paper we compare sources of economic growth in Japan and the United States from 1973 through 2000, focusing on the role of information technology (IT). We have adjusted Japanese data to conform to U.S. definitions in order to provide a rigorous comparison between the two economies. The contribution of information technology to economic growth was strikingly similar in Japan and the United States in the last half of the 1990's. The growth rate of the Japanese economy declined drastically in the early 1990's, but revived modestly during the last half of the decade. In this period the share of the Japanese gross domestic product devoted to investment in computers, telecommunications equipment, and software rose sharply and the rate of total factor productivity growth increased. However, the contributions of labor input and other sources of growth in Japan lagged far behind those in the United States.

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Publisher Info
Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 03015.

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Length: 30 pages
Date of creation: Jul 2003
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Handle: RePEc:eti:dpaper:03015

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Jorgenson, Dale W. & Ho, Mun S. & Stiroh, Kevin J., 2003. "Lessons from the US growth resurgence," Journal of Policy Modeling, Elsevier, vol. 25(5), pages 453-470, July. [Downloadable!] (restricted)
  2. Griliches, Zvi, 1994. "Productivity, R&D, and the Data Constraint," American Economic Review, American Economic Association, vol. 84(1), pages 1-23, March.
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  3. Dale Jorgenson & Mun Ho & Kevin Stiroh, 2003. "Growth of US Industries and Investments in Information Technology and Higher Education," Economic Systems Research, Taylor and Francis Journals, vol. 15(3), pages 279-325, September. [Downloadable!] (restricted)
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  4. Basu, Susanto, 1996. "Procyclical Productivity: Increasing Returns or Cyclical Utilization?," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 719-51, August. [Downloadable!] (restricted)
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  5. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD, Economics Department. [Downloadable!]
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  6. Erik Brynjolfsson & Lorin Hitt, 1997. "Information Technology as a Factor of Production: The Role of Differences Among Firms," Working Paper Series 201, MIT Center for Coordination Science. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kyoji Fukao & Keiko Ito, 2003. "Physical and Human Capital Deepening and New Trade Patterns in Japan," Hi-Stat Discussion Paper Series d03-03, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
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  2. Keiichiro Kobayashi, 2004. "Payment Uncertainty and the Productivity Slowdown," Discussion papers 04029, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
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  3. Tokuo Iwaisako, 2004. "Corporate Investment and Restructuring," Discussion Paper Series a460, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  4. Hyeog Ug Kwon, 2004. "Productivity growth and R&D spillovers in Japanese manufacturing industry," Hi-Stat Discussion Paper Series d03-16, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  5. Keiko Ito & Kyoji Fukao, 2003. "Vertical Intra-Industry Trade and the Division of Labor in East Asia," Discussion Paper Series a444, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  6. Keiichiro Kobayashi, 2006. "Payment uncertainty, the division of labor, and productivity declines in great depressions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(4), pages 715-741, October. [Downloadable!] (restricted)
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