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Heterogeneity, trust, human capital and productivity growth: Decomposition analysis

  • Yamamura, Eiji
  • Shin, Inyong

This paper uses panel data from Japan to decompose productivity growth measured by the growth of output per labor unit into three components of efficiency improvement, capital accumulation and technological progress. It then examines their determinants through a dynamic panel model. In particular, this paper focuses on the question of how inequality, trust and humans affect the above components. The main findings derived from empirical estimations are: (1) Inequality impedes not only improvements in efficiency but also capital accumulation. (2) A degree of trust promotes efficiency improvements and capital accumulation at the same time. However, human capital merely enhances improvements in efficiency.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20083.

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Date of creation: 15 Jan 2010
Date of revision:
Handle: RePEc:pra:mprapa:20083
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  1. repec:oup:qjecon:v:114:y:1999:i:1:p:83-116 is not listed on IDEAS
  2. Zheng, Jinghai & Liu, Xiaxuan & Bigsten, Arne, 2000. "Efficiency, Technical Progress, and Best Practice in Chinese State Enterprises (1980-1994)," Working Papers in Economics 30, University of Gothenburg, Department of Economics.
  3. Yamamura, Eiji & Shin, Inyong, 2007. "Dynamics of agglomeration economies and regional industrial structure: The case of the assembly industry of the Greater Tokyo Region, 1960-2000," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 483-499, December.
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  11. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
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  18. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April.
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  20. Jacob L. Vigdor, 2004. "Community Composition and Collective Action: Analyzing Initial Mail Response to the 2000 Census," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 303-312, February.
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  25. Hongyi Li & Heng-fu Zou, 1998. "Income Inequality Is Not Harmful for Growth: Theory and Evidence," CEMA Working Papers 74, China Economics and Management Academy, Central University of Finance and Economics.
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