Estimates of Intangible Investment by Industry and Productivity Growth in Japan

31 Pages Posted: 5 Feb 2013

See all articles by Tsutomu Miyagawa

Tsutomu Miyagawa

Japan Center for Economic Research

Shoichi Hisa

Hitotsubashi Universtiy - Graduate School

Date Written: March 2013

Abstract

In estimating intangible investment in Japan at the industry level, we find a high intangible investment/gross value added ratio in the information technology (IT) sector and negative growth rates in intangible capital in 13 industries over the decade from 2000. When we examine the impacts of intangible investment on total factor productivity growth, we find a significant and positive effect on total factor productivity growth in the market economy. In a revised estimation that considers intertemporal knowledge spillovers, the estimated rate of return on intangibles in the IT sector is quite high after the IT revolution. The results imply that intangible assets have been underinvested in the IT sector.

JEL Classification: E01, E22, O31, O32

Suggested Citation

Miyagawa, Tsutomu and Hisa, Shoichi, Estimates of Intangible Investment by Industry and Productivity Growth in Japan (March 2013). Japanese Economic Review, Vol. 64, Issue 1, pp. 42-72, 2013, Available at SSRN: https://ssrn.com/abstract=2211965 or http://dx.doi.org/10.1111/jere.12000

Tsutomu Miyagawa (Contact Author)

Japan Center for Economic Research ( email )

2-6-1, Nihonbashi Kayabacho
Chuo-ku, Tokyo 103-0025
Japan

Shoichi Hisa

Hitotsubashi Universtiy - Graduate School ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8601
Japan

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
394
PlumX Metrics