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Structural Change and Transformation of Growth Regime in the Japanese Economy

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  • Hiroshi Nishi

Abstract

The purpose of this study is to empirically examine the relationship between structural change and economic growth in Japan during the past 40 years. While using the growth in real value added and labour productivity as measurement of economic growth, we consider the structural change in value added as the structural change in output and that in capital and labour as the structural change in inputs. Specifically, we use the Japan Industrial Productivity database 2014 compiled by the Research Institute of Economy, Trade and Industry, and show (1) the pace of structural change in inputs and output, (2) the evolution of sectoral dispersion of economic growth, (3) the changing distribution of sectoral contribution to aggregate economic growth, and (4) empirical evidence of the relationship between structural change and economic growth. Our main conclusion is that the Japanese growth regime has transformed from a heterogeneity decreased regime with overall growth process to a heterogeneity increased one with uneven growth process since the 1990s; the impact that structural change in output had on economic growth was positive, although its magnitude has weakened since then.

Suggested Citation

  • Hiroshi Nishi, 2015. "Structural Change and Transformation of Growth Regime in the Japanese Economy," Discussion papers e-15-001, Graduate School of Economics Project Center, Kyoto University.
  • Handle: RePEc:kue:dpaper:e-15-001
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    References listed on IDEAS

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    1. Keiko Ito & Sébastien Lechevalier, 2009. "The evolution of the productivity dispersion of firms: a reevaluation of its determinants in the case of Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 405-429, October.
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    More about this item

    Keywords

    wage gap; Growth regime; Sectoral heterogeneity; Structural change; Japanese economy;

    JEL classification:

    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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