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Productivity growth and the structure of production

Author

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  • Kim, Jiyoung
  • Nakano, Satoshi
  • Nishimura, Kazuhiko

Abstract

In this study, interactions between potential hierarchical value chains existing in the production structure and industry-wise productivity growths are sought. We applied generalized Chenery-Watanabe heuristics for matrix linearity maximization to triangulate the input-output incidence matrix for both Japan and the Republic of Korea, finding the potential directed flow of values spanning the industrial sectors of the basic (disaggregated) industry classifications for both countries. Sector specific productivity growths were measured by way of the Tronquvist index, using the 2000-2005 linked input-output tables for both Japan and Korea.

Suggested Citation

  • Kim, Jiyoung & Nakano, Satoshi & Nishimura, Kazuhiko, 2016. "Productivity growth and the structure of production," IDE Discussion Papers 624, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper624
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    References listed on IDEAS

    as
    1. Song, Byung Nak, 1977. "The Production Structure of the Korean Economy: International and Historical Comparisons," Econometrica, Econometric Society, vol. 45(1), pages 147-162, January.
    2. Korte, Bernhard & Oberhofer, Walter, 1971. "Triangularizing input-output matrices and the structure of production," European Economic Review, Elsevier, vol. 11(4), pages 493-522.
    3. Fukui, Yukio, 1986. "A More Powerful Method for Triangularizing Input-Output Matrices and the Similarity of Production Structures," Econometrica, Econometric Society, vol. 54(6), pages 1425-1433, November.
    4. Star, Spencer & Hall, Robert E, 1976. "An Approximate Divisia Index of Total Factor Productivity," Econometrica, Econometric Society, vol. 44(2), pages 257-263, March.
    5. Korte, Bernhard & Oberhofer, Walter, 1971. "Triangularizing input-output matrices and the structure of production," European Economic Review, Elsevier, vol. 2(4), pages 493-522.
    6. Yasushi Kondo, 2014. "Triangulation of Input–Output Tables Based on Mixed Integer Programs for Inter-temporal and Inter-regional Comparison of Production Structures," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 3(1), pages 1-19, December.
    7. W. Art Chaovalitwongse & Carlos A. S. Oliveira & Bruno Chiarini & Panos M. Pardalos & Mauricio G. C. Resende, 2011. "Revised GRASP with path-relinking for the linear ordering problem," Journal of Combinatorial Optimization, Springer, vol. 22(4), pages 572-593, November.
    8. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    D57 - Input/Output Tables and Analysis; D58 - Computable Models; Productivity; Input-output tables; Triangulation; Linked Input-Output Tables; Linear Ordering Problem; Productivity Growth;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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