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Non-linear transition mechanism of production and Japanese development

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  • Yagi, Tomoyuki
  • Takahashi, Masako

Abstract

This study theoretically clarifies the non-linear transition mechanism of production and Japanese economic development. This mechanism is empirically known but the precise nature of the shifts is unclear and has yet to be specified theoretically. The study focuses on four factors: economies of scale, the operating rate, the vintage facilities, and the international transfer of facilities, all of which would impact on the transition mechanism and from which a new model is derived. This model demonstrates the jumping processes involved in production highlighting the existences of thresholds, which induce them. These thresholds relate to the identified factors and which provide an explanation for rapid increases and sudden declines in production. This study investigates specific cases of such changes in the Japanese manufacturing sector and reviews the role of these four factors. Illustrated is the non-linear nature of the transition mechanism in its effect on the Japanese economic growth.

Suggested Citation

  • Yagi, Tomoyuki & Takahashi, Masako, 2015. "Non-linear transition mechanism of production and Japanese development," Economic Analysis and Policy, Elsevier, vol. 47(C), pages 34-47.
    • Handle: RePEc:eee:ecanpo:v:47:y:2015:i:c:p:34-47
    DOI: 10.1016/j.eap.2015.06.004
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    References listed on IDEAS

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    Cited by:

    1. Bahmani-Oskooee, Mohsen & Gelan, Abera, 2018. "Exchange-rate volatility and international trade performance: Evidence from 12 African countries," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 14-21.
    2. Tomoyuki Yagi & Masako Takahashi, 2016. "Business cycle turning points based on DEA-discriminant analysis," Applied Economics, Taylor & Francis Journals, vol. 48(44), pages 4251-4256, September.

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    More about this item

    Keywords

    Non-linear transition process; Production; Economies of scale; Operating rate; Vintage facilities; International transfer;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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