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Import variety and productivity in Japan

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  • Craig R. Parsons

    ()

    (Yokohama National University)

  • Anh Thu Nguyen

    ()

    (Yokohama National University)

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    Abstract

    This paper constructs import variety indices, as developed by Feenstra (1994), for 21 industries over a twenty year period for Japan. Next, both single-equation and panel regressions of productivity (TFP) on import variety and R&D are conducted. Results find that increased import variety, both own-variety and upstream inputs, positively affect productivity.

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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I3-P43.pdf
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    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 29 (2009)
    Issue (Month): 3 ()
    Pages: 1947-1959

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    Handle: RePEc:ebl:ecbull:eb-09-00244
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    Keywords: variety index; imports; growth; TFP; Japan;

    Find related papers by JEL classification:

    • F1 - International Economics - - Trade
    • F0 - International Economics - - General

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    1. David Weinstein & Christian Broda, 2004. "Globalization and the Gains from Variety," Econometric Society 2004 North American Summer Meetings 508, Econometric Society.
    2. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
    3. By Michael Funke & Ralf Ruhwedel, 2001. "Product Variety and Economic Growth: Empirical Evidence for the OECD Countries," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 1.
    4. Funke, Michael & Ruhwedel, Ralf, 2003. "Export variety and economic growth in East European transition economies," BOFIT Discussion Papers 8/2003, Bank of Finland, Institute for Economies in Transition.
    5. Toda, Hiro Y, 1994. "Finite Sample Properties of Likelihood Ratio Tests for Cointegrating Ranks when Linear Trends are Present," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 66-79, February.
    6. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
    7. Hamori, Shigeyuki & Matsubayashi, Yoichi, 2001. "An empirical analysis on the stability of Japan's aggregate import demand function," Japan and the World Economy, Elsevier, vol. 13(2), pages 135-144, April.
    8. Feenstra, Robert C. & Madani, Dorsati & Yang, Tzu-Han & Liang, Chi-Yuan, 1999. "Testing endogenous growth in South Korea and Taiwan," Journal of Development Economics, Elsevier, vol. 60(2), pages 317-341, December.
    9. Ralf Ruhwedel & Michael Funke, 2000. "Export Variety and Export Performance: Empirical Evidence from East Asia," Quantitative Macroeconomics Working Papers 20006, Hamburg University, Department of Economics.
    10. Nishimura, Kiyohiko G. & Nakajima, Takanobu & Kiyota, Kozo, 2005. "Does the natural selection mechanism still work in severe recessions?: Examination of the Japanese economy in the 1990s," Journal of Economic Behavior & Organization, Elsevier, vol. 58(1), pages 53-78, September.
    11. Robert C. Feenstra & Hiau Looi Kee, 2007. "Trade Liberalisation and Export Variety: A Comparison of Mexico and China," The World Economy, Wiley Blackwell, vol. 30(1), pages 5-21, 01.
    12. Feenstra, Robert C. & Yang, Tzu-Han & Hamilton, Gary G., 1999. "Business groups and product variety in trade: evidence from South Korea, Taiwan and Japan," Journal of International Economics, Elsevier, vol. 48(1), pages 71-100, June.
    13. Ceglowski, Janet, 1996. "The recent behavior of Japanese imports: A disaggregated analysis," Japan and the World Economy, Elsevier, vol. 8(4), pages 443-457, December.
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