Japan's productivity and GDP growth: The role of private, public and foreign R&D 1967-2017

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economies ; ISSN: 2227-7099 ; Volume: 8 ; Year: 2020 ; Issue: 4 ; Pages: 1-25 ; Basel: MDPI

Classification and Topics

• Classification: Wirtschaft ; Economic Growth of Open Economies ; International Linkages to Development; Role of International Organizations ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Economywide Country Studies: Asia including Middle East
• Subject: public and private R&D ; productivity ; growth ; spillovers ; vector-auto-regression/error-correction (VAR/VECM)

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ziesemer, Thomas
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2020

Further information

• DOI: doi:10.3390/economies8040077
• Handle: http://hdl.handle.net/10419/257126
• Last update: 10.03.2025, 11:44 AM CET