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Industrial Productivity Divergence and Input-Output Network Structures: Evidence from Japan 1973–2012.
- Source :
- Economies; Jun2019, Vol. 7 Issue 2, p52, 1p
- Publication Year :
- 2019
-
Abstract
- Since the early 1990s, there have been larger and increasing labor productivity differences across industries in Japan. More specifically, a clear pattern of sigma and beta divergence across industries is observed. To shed light on these stylized facts, we first evaluate the input–output structure of Japan through the lens of a community-detection algorithm from network theory. Results from this analysis suggest the existence of two input–output network structures: a densely-connected group of industries (a stationary community), whose members remain in it throughout the period; and a group of industries (a transitional community) whose members do not belong to this first group. Next, we re-evaluate the industrial divergence pattern of Japan in the context of each network structure. Results suggest that divergence is mostly driven by the transitional community. Interestingly, since 2007, a pattern of sigma convergence started to re-appear only in the stationary community. We conclude suggesting that industrial divergence and instability in community membership are not necessarily indicative of low productivity performance. [ABSTRACT FROM AUTHOR]
- Subjects :
- INDUSTRIAL productivity
LABOR productivity
EVIDENCE
Subjects
Details
- Language :
- English
- ISSN :
- 22277099
- Volume :
- 7
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Economies
- Publication Type :
- Academic Journal
- Accession number :
- 137457325
- Full Text :
- https://doi.org/10.3390/economies7020052