Sectoral Productivity and Economic Growth in Japan, 1970-98: An Empirical Analysis Based on the JIP Database
In this paper we conducted a detailed analysis of Japan's TFP growth by making use of the Japan Industrial Productivity Database (the JIP Database) which we have recently completed. We got the following results. 1.After taking account of the quality of labor and the capacity utilization rate we found the decline in TFP growth at the macro-level from the 1980s to the 1990s not to be so great. Hayashi and Prescott (2002) seem to have overestimated the size of the TFP growth decline. 2.On the other hand, there was a substantial change in the pattern of sectoral TFP growth. The slowdown in TFP growth mainly occurred in the manufacturing sector. In contrast, TFP growth in the non-manufacturing sectors accelerated during the 1990s. 3.In the 1990s, substantial deregulations were accomplished in non-manufacturing industries, especially in communication, wholesale and retail trade, and finance, insurance and real estate, and this change seems to have contributed to the acceleration of TFP growth in these industries. But we should also note that, compared with other developed countries, Japan's TFP growth in the non-manufacturing sector is still quite low. 4.Regarding the manufacturing sector in the 1990s, the following three factors seem to have contributed to the low level of TFP growth. First, new entries were very limited. Secondly, the exit effect was negative, that is, the average TFP level of exiting firms was higher than that of staying firms. Thirdly, the reallocation effect of resources was small.
(This abstract was borrowed from another version of this item.)
|Date of creation:||Mar 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ier.hit-u.ac.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fumio Hayashi & Edward C. Prescott, 2000.
"The 1990s in Japan: a lost decade,"
607, Federal Reserve Bank of Minneapolis.
- Fumio Hayashi & Edward C. Prescott, 2002. "The 1990s in Japan: A Lost Decade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(1), pages 206-235, January.
- Fumio Hayashi & Edward C. Prescott, 2004. "The 1990s in Japan: a lost decade," Chapters, in: The Economics of an Ageing Population, chapter 2 Edward Elgar.
- Lucia Foster & John Haltiwanger & C.J. Krizan, 1998.
"Aggregate Productivity Growth: Lessons from Microeconomic Evidence,"
NBER Working Papers
6803, National Bureau of Economic Research, Inc.
- Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth. Lessons from Microeconomic Evidence," NBER Chapters, in: New Developments in Productivity Analysis, pages 303-372 National Bureau of Economic Research, Inc.
- John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau.
- Kyoji Fukao & Kiyohiko Nishimura & Qing-Yuan Sui & Masayo Tomiyama, 2005.
"Japanese Banks’ monitoring activities and the performance of borrower firms: 1981–1996,"
International Economics and Economic Policy,
Springer, vol. 2(4), pages 337-362, December.
- Kyoji Fukao & Kiyohiko G. Nishimura & Qing-Yuan Sui & Masayo Tomiyama, 2004. "Japanese Banks' Monitoring Activities and the Performance of Borrower Firms: 1981-1996," Hi-Stat Discussion Paper Series d04-42, Institute of Economic Research, Hitotsubashi University.
- Fumio Hayashi & Edward C. Prescott, 2002.
"Data Appendix to The 1990s in Japan: A Lost Decade,"
hayashi02, Review of Economic Dynamics.
- Ito, Keiko & Fukao, Kyoji, 2005.
"Foreign direct investment and trade in Japan: An empirical analysis based on the Establishment and Enterprise Census for 1996,"
Journal of the Japanese and International Economies,
Elsevier, vol. 19(3), pages 414-455, September.
- Ito, Keiko & Fukao, Kyoji, 2003. "Foreign Direct Investment and Trade in Japan: An Empirical Analysis Based on the Establishment and Enterprise Census for 1996," Discussion Paper Series a441, Institute of Economic Research, Hitotsubashi University.
- Basu, Susanto, 1996.
"Procyclical Productivity: Increasing Returns or Cyclical Utilization?,"
The Quarterly Journal of Economics,
MIT Press, vol. 111(3), pages 719-51, August.
- Susanto Basu, 1995. "Procyclical Productivity: Increasing Returns or Cyclical Utilization?," NBER Working Papers 5336, National Bureau of Economic Research, Inc.
- Aw, Bee Yan & Chen, Xiaomin & Roberts, Mark J., 2001. "Firm-level evidence on productivity differentials and turnover in Taiwanese manufacturing," Journal of Development Economics, Elsevier, vol. 66(1), pages 51-86, October.
- repec:cup:cbooks:9781107411289 is not listed on IDEAS
- Hulten, Charles R, 1978. "Growth Accounting with Intermediate Inputs," Review of Economic Studies, Wiley Blackwell, vol. 45(3), pages 511-18, October.
- Kyoji Fukao & Tsutomu Miyagawa & Hiroki Kawai & Tomohiko Inui & Ximing Yue & Yoshinobu Okumoto & Masakatu Nakamura & Masahide Hayashida & Kazuyoshi Nakata & Kensho Hashikawa & Naoki Okumura & Yukako M, 2003. "Sectoral Productivity and Economic Gwowth in Japan : 1970-98 (in Japanese)," Economic Analysis, Economic and Social Research Institute (ESRI), vol. 170, pages 3-415, June.
When requesting a correction, please mention this item's handle: RePEc:hst:hstdps:d03-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tatsuji Makino)
If references are entirely missing, you can add them using this form.