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Sources of Future Economic Growth in Japan: An empirical analysis based on micro-data (Japanese)

Listed author(s):
  • FUKAO Kyoji
  • KWON Hyeog Ug

Using micro-data of the Establishment and Enterprise Census and the Basic Survey of Japanese Business Structure and Activities , we examine the characteristics of firms that were active in jobs creation, capital accumulation, and the improvement of total factor productivity (TFP). We also analyze in what industries jobs were created. Our main findings are as follows: (1) younger firms and affiliates of foreign firms have created many jobs through new entry and firm expansion, whereas most of the older and larger firms have been reducing employment; (2) most of the new jobs were created in the service sector, while job destruction mainly occurred in the manufacturing and construction sectors; (3) younger firms were also active in capital accumulation; (4) younger firms and foreign-owned firms tended to have a higher TFP level and achieve higher TFP growth; and (5) large firms, which were active in R&D, international trade, and direct investment abroad, also tended to have a higher TFP level and achieve higher TFP growth.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 11045.

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Length: 63 pages
Date of creation: Apr 2011
Handle: RePEc:eti:rdpsjp:11045
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