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Plant Productivity, Keiretsu, and Agglomeration in the Japanese Automobile Industry: An Empirical Analysis Based on Micro-Data of Census of Manufactures 1981-1996

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  • Keiko Ito

Abstract

Using plant-level data underlying the Census of Manufactures, total factor productivity (TFP) growth and its determinants are analyzed for the Japanese automobile industry since 1980s. The average annual TFP growth rate from 1981 to 1996 was only about 0.6 percent for the automobile assembly industry and about 1.3 percent for the auto parts manufacturing industry. In the Japanese auto parts manufacturing industry, we found that R&D spillovers from assemblers had a significantly positive effect on the parts suppliers' TFP growth and that parts suppliers located near an assembly plant achieved higher TFP growth.

Suggested Citation

  • Keiko Ito, 2004. "Plant Productivity, Keiretsu, and Agglomeration in the Japanese Automobile Industry: An Empirical Analysis Based on Micro-Data of Census of Manufactures 1981-1996," Hi-Stat Discussion Paper Series d04-51, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:hstdps:d04-51
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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2004/pdf/D04-51.pdf
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    Cited by:

    1. Ralph Paprzycki, 2006. "The Impact of Foreign Direct Investment in Japan: Case Studies of the Automobile, Finance, and Health Care Industries," Hi-Stat Discussion Paper Series d05-141, Institute of Economic Research, Hitotsubashi University.

    More about this item

    Keywords

    Automobile Industry; Total Factor Productivity; Keiretsu; Agglomeration; R&D Spillover;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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    1. Studies on the automobile industry

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