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Structural Change, Capital Deepening, and TFP Growth in Japan: 1885-1970


  • Fukao, Kyoji
  • Makino, Tatsuji
  • Settsu, Tokihiko


After the Meiji Restoration of 1868, Japan modernized its institutions and economic growth gradually picked up. Growth accelerated especially during the so-called high-speed growth era from 1955 to 1970, when Japan rapidly caught up with Western economies. The long-term sustained high-speed growth recorded during this period was unprecedented not only in Japan but worldwide. While other East Asian countries such as Singapore, Taiwan, South Korea, and China subsequently also experienced remarkable growth over a prolonged period, Japan’s place in history as the first country to record such sustained high-speed growth means that its experience continues to garner worldwide interest. Using newly constructed Hitotsubashi estimates of Japan’s historical GDP statistics and a growth accounting framework, we analyze the sources of Japan’s economic growth from 1885 to 1970 and try to answer why Japan was not able to accomplish such high-speed growth before 1955. Since until the mid-1960s the primary sector accounted for a large share of economic activity and was a major determinant of overall economic growth, we use a Hayashi and Prescott (2008) type two-sector model in which the economy overall is divided into the primary sector and the non-primary sector

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  • Fukao, Kyoji & Makino, Tatsuji & Settsu, Tokihiko, 2019. "Structural Change, Capital Deepening, and TFP Growth in Japan: 1885-1970," Discussion Paper Series 693, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:hituec:693

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    References listed on IDEAS

    1. Dale Jorgenson & Mun Ho & Jon Samuels & Kevin Stiroh, 2007. "Industry Origins of the American Productivity Resurgence," Economic Systems Research, Taylor & Francis Journals, vol. 19(3), pages 229-252.
    2. Jorgenson,Dale W. & Fukao,Kyoji & Timmer,Marcel P. (ed.), 2016. "The World Economy," Cambridge Books, Cambridge University Press, number 9781107143340, December.
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    1. Kyoji Fukao & Tatsuji Makino & Tokihiko Settsu, 2021. "Human Capital And Economic Growth In Japan: 1885–2015," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 710-740, July.
    2. THW Ziesemer, 2020. "Japan’s Productivity and GDP Growth: The Role of Private, Public and Foreign R&D 1967–2017," Economies, MDPI, vol. 8(4), pages 1-25, September.

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