Information Technology and the Japanese Economy
In this paper we compare sources of economic growth in Japan and the United States from 1975 through 2003, focusing on the role of information technology (IT). We have adjusted Japanese data to conform to U.S. definitions in order to provide a rigorous comparison between the two economies. The adjusted data show that the share of the Japanese gross domestic product devoted to investment in computers, telecommunications equipment, and software rose sharply after 1995. The contribution of total factor productivity growth from the IT sector in Japan also increased, while the contributions of labor input and productivity growth from the Non-IT sector lagged far behind the United States. Our projection of potential economic growth in Japan from for the next decade is substantially below that in the United States, mainly due to slower growth of labor input. Our projections of labor productivity growth in the two economies are much more similar.
|Date of creation:||Nov 2005|
|Date of revision:|
|Publication status:||published as Jorgenson, Dale W. and Kazuyuki Motohashi. "Information Technology And The Japanese Economy," Journal of the Japanese and International Economies, 2005, v19(4,Dec), 460-481.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
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, 2002.
"Data Appendix to The 1990s in Japan: A Lost Decade,"
hayashi02, Review of Economic Dynamics.
- Price Statistics Division, 2001. "Quality Adjustment of Price Indexes -- Wholesale Price Index and Corporate Service Price Index: The Current Situation and Future Implications," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
- Dale W. Jorgenson & Kevin J. Stiroh, 2000.
"Raising the Speed Limit: U.S. Economic Growth in the Information Age,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
- Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Publishing.
- Kazuyuki Motohashi, 2004.
"Firm level analysis of information network use and productivity in Japan,"
Hi-Stat Discussion Paper Series
d03-14, Institute of Economic Research, Hitotsubashi University.
- Motohashi, Kazuyuki, 2007. "Firm-level analysis of information network use and productivity in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(1), pages 121-137, March.
- Kazuyuki Motohashi, 2003. "Firm level analysis of information network use and productivity in Japan," Discussion papers 03021, Research Institute of Economy, Trade and Industry (RIETI).
- Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
- Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2004. "Will the U.S. productivity resurgence continue?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 10(Dec).
- Susanto Basu, 1995.
"Procyclical Productivity: Increasing Returns or Cyclical Utilization?,"
NBER Working Papers
5336, National Bureau of Economic Research, Inc.
- Basu, Susanto, 1996. "Procyclical Productivity: Increasing Returns or Cyclical Utilization?," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 719-51, August.
- Alessandra Colecchia & Paul Schreyer, 2002. "ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 408-442, April.
- Fumio Hayashi & Edward C. Prescott, 2000.
"The 1990s in Japan: a lost decade,"
607, Federal Reserve Bank of Minneapolis.
- 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.
- 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.
- Griliches, Zvi, 1994.
"Productivity, R&D, and the Data Constraint,"
American Economic Review,
American Economic Association, vol. 84(1), pages 1-23, March.
- Dale W. Jorgenson, 1995. "Productivity, Volume 1: Postwar US Economic Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100495, June.
- Dale W. Jorgenson & Koji Nomura, 2005.
"The Industry Origins of Japanese Economic Growth,"
NBER Working Papers
11800, National Bureau of Economic Research, Inc.
- Jorgenson, Dale W. & Nomura, Koji, 2005. "The industry origins of Japanese economic growth," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 482-542, December.
- Erik Brynjolfsson & Lorin Hitt, 1997.
"Information Technology as a Factor of Production: The Role of Differences Among Firms,"
Working Paper Series
201, MIT Center for Coordination Science.
- Brynjolfsson, Erik. & Hitt, Lorin M., 1994. "Information technology as a factor of production : the role of differences among firms," Working papers 3715-94. CCSTR ; #173., Massachusetts Institute of Technology (MIT), Sloan School of Management.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:11801. 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: ()
If references are entirely missing, you can add them using this form.