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Total Factor Productivity Changes in Japanese Small and Medium-Sized Enterprises in 1982–2016: Suggestive Indications of an IT Revolution?

Author

Listed:
  • Yoko Konishi

    (Research Institute of Economy, Trade and Industry (RIETI) 1-3-1 Kasumigaseki Chiyoda-ku Tokyo, 100-8901, Japan)

  • Takashi Saito

    (Ministry of Economy, Trade and Industry (METI) 1-3-1 Kasumigaseki Chiyoda-ku Tokyo, 100-8901, Japan)

Abstract

Since the information technology revolution in 2000, businesses worldwide have adopted information and communication technology (ICT) and big data. Recent studies attribute the origin of productivity growth in Europe and the United States to the depth of ICT utilization. We investigate whether that is the case in Japan. We measure the productivity of five manufacturing and eleven services industries in Japan and observe how it changed before and after 2000. Our results suggest that productivity increased for providers of ICT products but not for providers of ICT services. Moreover, productivity rose after 2000 in seven services industries that are users of ICT. Japanese firms are predominantly small and medium-sized and we conclude that the productivity findings for western countries are also observed for Japanese small and medium-sized enterprises.

Suggested Citation

  • Yoko Konishi & Takashi Saito, 2020. "Total Factor Productivity Changes in Japanese Small and Medium-Sized Enterprises in 1982–2016: Suggestive Indications of an IT Revolution?," Asian Economic Papers, MIT Press, vol. 19(3), pages 21-37, Fall.
    • Handle: RePEc:tpr:asiaec:v:19:y:2020:i:3:p:21-37
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