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