Similarities and Differences between the Manufacturing and the Service Sectors: An empirical analysis of Japanese automobile related industries
AbstractThis paper examines the similarities and differences between the manufacturing and the service sectors in terms of market power and productivity dispersion, using data of Japanese automobile manufacturers and dealers. Applying a newly developed approach proposed by Martin (2010), we estimate the firm-specific productivity and mark-up under imperfect competition, and discuss features of them by industry. From those estimates, we find that both industries have similar relations between productivity and mark-up, and their transition probabilities are almost the same. On the other hand, the roles of industries in the production process or the conditions of market competition are different between those industries. In addition, the relations between business scale and productivity are conflicting. As a whole, the implicit assumption that the service industries are structurally different from manufacturing is controversial. However, ignoring the differences in the conditions of their market competition possibly gives significant bias to the policy implications.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 10057.
Length: 24 pages
Date of creation: Oct 2010
Date of revision:
Contact details of provider:
Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
Web page: http://www.rieti.go.jp/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-30 (All new papers)
- NEP-BEC-2010-10-30 (Business Economics)
- NEP-EFF-2010-10-30 (Efficiency & Productivity)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko).
If references are entirely missing, you can add them using this form.