Artikel

Industrial productivity divergence and input-output network structures: Evidence from Japan 1973-2012

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.

Language
Englisch

Bibliographic citation
Journal: Economies ; ISSN: 2227-7099 ; Volume: 7 ; Year: 2019 ; Issue: 2 ; Pages: 1-14 ; Basel: MDPI

Classification
Wirtschaft
Subject
communities
input-output networks
productivity
convergence analysis

Event
Geistige Schöpfung
(who)
Domínguez, Alvaro
Mendez, Carlos
Event
Veröffentlichung
(who)
MDPI
(where)
Basel
(when)
2019

DOI
doi:10.3390/economies7020052
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Domínguez, Alvaro
  • Mendez, Carlos
  • MDPI

Time of origin

  • 2019

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