KIM Sangho
Department Ritsumeikan Asia Pacific University College of Asia Pacific Studies Position Professor |
|
Language | English |
Publication Date | 2015/08 |
Type | Research paper (Academic/Professional Journal) |
Peer Review | Peer reviewed |
Title | Returns to Scale, Markup and Total Factor Productivity for the Japanese Manufacturing Industry |
Contribution Type | Corresponding |
Journal | Korea and the World Economy |
Volume, Issue, Page | 16(2),pp.195-222 |
Author and coauthor | Keunjae Lee |
Details | This study utilizes industrial panel data for the Japanese manufacturing industry to decompose the Solow residual into scale economies, markup effects, and technical change. Empirical results show that the economic growth during 1970-85 was driven mostly by scale economies resulting from large capital investments rather than by pure technological progress. The results also indicate that productivity growth started to decline in 1985 when manufacturers tried to contest eroding price competitiveness with economies of scale, which is much earlier than implied by the original Solow residual. Furthermore, sectoral estimation suggests that productivity grew much faster in the high-growth sector than in the low-growth sector, suggesting that international competition caused the high-growth sector to be more efficient than the low-growth sector. |
ISSN | 2234-2346 |