Back to Search
Start Over
Japan's Productivity and GDP Growth: The Role of Private, Public and Foreign R&D 1967–2017.
- Source :
- Economies; Dec2020, Vol. 8 Issue 4, p77, 1p
- Publication Year :
- 2020
-
Abstract
- We analyze the dynamic interaction of Japan's total factor productivity, gross domestic product (GDP) domestic and foreign private and public research and development (R&D) in vector-error-correction models (VECMs) for Japan with data from 1963–2017. Extensive testing leads to favoring a model with five cointegrating equations for the six variables. Analysis of effects of permanent policy changes shows that (i) additional public R&D encourages private R&D and total factor productivity (TFP), and has higher internal rates of return than private R&D changes and therefore could speed up Japan's growth; (ii) public R&D changes have a statistically significant positive permanent effect on foreign private R&D stocks and a transitional effect on foreign public R&D stocks; (iii) private R&D changes have a statistically significant positive permanent effect on foreign public R&D stocks and a transitional effect on foreign private R&D stocks; (iv) after a temporary GDP change, public R&D is counter-cyclical in the short and medium run and private R&D is pro-cyclical. Empirical results are related to the parameters of a VES (variable elasticity of substitution) function for TFP production. [ABSTRACT FROM AUTHOR]
- Subjects :
- INTERNAL rate of return
INDUSTRIAL productivity
GROSS domestic product
Subjects
Details
- Language :
- English
- ISSN :
- 22277099
- Volume :
- 8
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Economies
- Publication Type :
- Academic Journal
- Accession number :
- 147945827
- Full Text :
- https://doi.org/10.3390/economies8040077