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The Role of Production Organization, Infrastructure, and R&D in the Catching-up Process of Japanese to German Industries

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  • Conrad, Klaus
  • Wastl, Dieter
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    Abstract

    This paper presents an empirical study of productivity comparison between Japan and Germany with focus on the R&D and infrastructure. By using time-series datasets from auto vehicle industry and electronic engineering industry, the study shows the reversal of productivity advantage from Germany to Japan around 1980. We argue that Japanese productivity gains are from better infrastructure and cost-reducing innovations such as lean production methods. An econometric model determines the causes for the observed differences in the quantities of inputs used. It shows that frequent external procurement among Japanese manufactures has shifted the factor inputs from labor and capital to material, a result which is in line with the philosophy of lean production.

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    File URL: https://ub-madoc.bib.uni-mannheim.de/1056/1/541.pdf
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    Bibliographic Info

    Paper provided by Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre in its series Discussion Papers with number 541.

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    Date of creation: 1996
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    Handle: RePEc:mnh:vpaper:1056

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    1. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
    2. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    3. Conrad, Klaus, 1989. "Productivity and cost gaps in manufacturing industries in U.S., Japan and Germany," European Economic Review, Elsevier, vol. 33(6), pages 1135-1159, July.
    4. Denny, Michael & Fuss, Melvyn, 1983. "The Use of Discrete Variables in Superlative Index Number Comparisons," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(2), pages 419-21, June.
    5. M. Denny & M. Fuss & J. D. May, 1981. "Intertemporal Changes in Regional Productivity in Canadian Manufacturing," Canadian Journal of Economics, Canadian Economics Association, vol. 14(3), pages 390-408, August.
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