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Empirical Impact Of Public Infrastructure On The Japanese Economy

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  • CHRISTOPHER N. ANNALA
  • RAYMOND G. BATINA
  • JAMES P. FEEHAN

Abstract

We study the impact of public capital investment on individual sectors of the Japanese economy using time‐series data for the period of 1970–1998. We employ a production function approach and also estimate a dynamic VAR/ECM model. We find significant differences in the employment effects, output effects and private investment effects across sectors. Public capital investment has a positive effect on employment in the finance, insurance and real estate (FIRE), manufacturing, construction and utilities sectors; on private investment in the FIRE, agriculture, transportation, trade and services sectors; and on output in the mining, FIRE, trade and manufacturing sectors.

Suggested Citation

  • Christopher N. Annala & Raymond G. Batina & James P. Feehan, 2008. "Empirical Impact Of Public Infrastructure On The Japanese Economy," The Japanese Economic Review, Japanese Economic Association, vol. 59(4), pages 419-437, December.
    • Handle: RePEc:bla:jecrev:v:59:y:2008:i:4:p:419-437
    DOI: 10.1111/j.1468-5876.2008.00427.x
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    Cited by:

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    3. Alfredo Marvão Pereira & Rui Manuel Pereira, 2017. "Infrastructure Investment in Portugal and the Traded/Non-Traded Industry Mix," GEE Papers 0078, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2017.
    4. Ouédraogo, Rasmané & Sawadogo, Relwendé & Sawadogo, Hamidou, 2020. "Private and public investment in sub-Saharan Africa: The role of instability risks," Economic Systems, Elsevier, vol. 44(2).
    5. Koike, Atushi & Sakaguchi, Takuhiro & Seya, Hajime, 2022. "Road infrastructure and TFP in Japan after the rapid growth: A nonstationary panel approach," MPRA Paper 112375, University Library of Munich, Germany.
    6. Bayu Kharisma & Sutyastie Remi & Andar Noor, 2019. "Setting Local Government Priorities in Healthcare Infrastructure Using the Analytical Hierarchy Process Approach: The Cases of Local Governments in West Java Province," Public administration issues, Higher School of Economics, issue 5, pages 155-182.
    7. Fujii, Takao & Hiraga, Kazuki & Kozuka, Masafumi, 2013. "Effects of public investment on sectoral private investment: A factor augmented VAR approach," Journal of the Japanese and International Economies, Elsevier, vol. 27(C), pages 35-47.
    8. Харизма Б. & Реми С. & Нур А. М., 2019. "Определение Приоритетов Местного Самоуправления В Инфраструктуре Здравоохранения С Использованием Метода Аналитической Иерархии: Пример Местных Органов Власти В Провинции Западная Ява," Вопросы государственного и муниципального управления // Public administration issues, НИУ ВШЭ, issue 5, pages 155-182.

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