Productivity Growth in Japan (1951-1980): An Input-Output Analysis

Tchijov, I. & Sytchova, I. (1987). Productivity Growth in Japan (1951-1980): An Input-Output Analysis. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-87-028

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Abstract

A new approach to cost structure analysis by the use of input-output methods is proposed and applied to the investigation of post-war technological progress in the Japanese economy. The analysis is based on seven comparable input-output tables for 1951-1980. The methodology employed has two key steps. First, the input coefficients a are divided into two distinct components, one representing inputs of materials that are embodied in the product of the industry, and the other representing inputs of capital goods to replace capital "consumed" in the production process. The second step is to determine the corresponding indirect labor contributions (for "materials" and capital). Thus, total labor requirements for each sector are divided into three components: direct labor, labor embodied in purchased materials, and labor embodied in capital depreciation. The reduction of the total labor requirements for 18 industries from 1950 through 1988 is then disaggregated into direct labor savings, material savings, and capital savings components. The relative importance of these three cost-saving elements is analyzed from the viewpoint of long waves.

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