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The industry origins of Japanese economic growth

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  • Jorgenson, Dale W.
  • Nomura, Koji

Abstract

This paper presents new data on the sources of growth for the Japanese economy over the period 1960- 2000. The principal innovation is the incorporation of detailed information for individual industries, including those involved in the production of computers, communications equipment, and electronic components as information technology equipment. We show that economic growth is dominated by investments and productivity growth in information technology, both for individual industries and the economy as a whole. We also show that the revival of total factor productivity growth accounts for the modest resurgence of the Japanese economy since 1995.
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  • Jorgenson, Dale W. & Nomura, Koji, 2005. "The industry origins of Japanese economic growth," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 482-542, December.
    • Handle: RePEc:eee:jjieco:v:19:y:2005:i:4:p:482-542
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    Cited by:

    1. Robert W. Fogel, 2008. "The Impact of the Asian Miracle on the Theory of Economic Growth," NBER Chapters, in: Understanding Long-Run Economic Growth: Geography, Institutions, and the Knowledge Economy, pages 311-354, National Bureau of Economic Research, Inc.
    2. Jorgenson, Dale W. & Motohashi, Kazuyuki, 2005. "Information technology and the Japanese economy," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 460-481, December.
    3. Schreyer, Paul, 2009. "User costs and bubbles in land markets," Journal of Housing Economics, Elsevier, vol. 18(3), pages 267-272, September.
    4. Dekle, Robert & Vandenbroucke, Guillaume, 2012. "A quantitative analysis of China's structural transformation," Journal of Economic Dynamics and Control, Elsevier, vol. 36(1), pages 119-135.
    5. Philippe Bacchetta & Eric Van Wincoop, 2006. "Incomplete information processing: a solution to the forward discount puzzle," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.
    6. Tatsuyoshi Miyakoshi, 2010. "A Welfare Cost Of The Lost Decade In Japan," Australian Economic Papers, Wiley Blackwell, vol. 49(1), pages 28-43, March.
    7. Hara, Naoko & Ichiue, Hibiki, 2011. "Real-time analysis on Japan's labor productivity," Journal of the Japanese and International Economies, Elsevier, vol. 25(2), pages 107-130, June.
    8. Hayashi, Fumio & Nomura, Koji, 2005. "Can IT be Japan's savior?," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 543-567, December.
    9. Fueki, Takuji & Kawamoto, Takuji, 2009. "Does information technology raise Japan's productivity?," Japan and the World Economy, Elsevier, vol. 21(4), pages 325-336, December.
    10. Tatsuyoshi Miyakoshi & Pekka Ilmakunnas, 2009. "What decreases the TFP ? The aging labor and ICT imbalance," Discussion Papers in Economics and Business 09-03, Osaka University, Graduate School of Economics.
    11. Lee, Chien-Chiang & Chen, Mei-Ping & Chang, Chi-Hung, 2013. "Dynamic relationships between industry returns and stock market returns," The North American Journal of Economics and Finance, Elsevier, vol. 26(C), pages 119-144.
    12. Ashish Arora & Lee G. Branstetter & Matej Drev, 2013. "Going Soft: How the Rise of Software-Based Innovation Led to the Decline of Japan's IT Industry and the Resurgence of Silicon Valley," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 757-775, July.
    13. ., 2013. "Japan's Alternating Phases of Growth and Future Outlook," Chapters, in: D. S.P. Rao & Bart van Ark (ed.), World Economic Performance, chapter 6, pages 136-161, Edward Elgar Publishing.
    14. Shimpo, Kazushige, 2005. "Interindustry effects of productivity growth in Japan: 1960-2000," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 568-585, December.
    15. NAKAJIMA Takanobu, 2007. "Is Retail Service Productivity Really Low in Japan? -- Numerical experiment based on Shepard's model --," ESRI Discussion paper series 193, Economic and Social Research Institute (ESRI).
    16. Danny García, 2007. "Innovation and Growth: A Survey of the Literature and a Case Study for Latin America," Revista Ecos de Economía, Universidad EAFIT, October.

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    More about this item

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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