Economic Analysis Series No.180
THE ECONOMIC ANALYSIS

March, 2008
"Industrial agglomeration and economic convergence: The case of Japanese regions"
Akihiro Otsuka
"Quantitative analysis on competition and productivity"
Makoto Funakoshi
Kazuyuki Motohashi
"Have Main Banks Encouraged Corporate Restructuring?"
Tomohiko Noda
"Development of Japanese Patent Stock and Citation-Weighted Patent Stock-An Application of HJT Model to Japanese Patent Data-"
Setsuo Yamada
"Local Government Bond and Local Financial Institutions- Surveys on Local Financial Institutions and its Policy Implications -"
Takero Doi
Tomoko Hayashi
Nobuyuki Suzuki
"The ESRI Short-Run Macroeconometric Model of Japanese Economy (2006 version)-Basic Structure, Multipliers, and Economic Policy Analyses -"
Katsuhiko Masubuchi
Aki Iijima
Hisano Umei
Koichiro Iwamoto

The full text is written in Japanese.

(Abstract)

"Industrial agglomeration and economic convergence: The case of Japanese regions"

This paper examines the impact of industrial agglomeration on regional economic growth in Japan and explores whether the formation of industrial agglomeration contributes to the convergence of regional disparities in productivity. The empirical analysis indicates that spillover effects have greater effects on regional growth than economies of scale. Furthermore, scale economies contribute toward economic convergence in the manufacturing industry and increasing disparities across regions in the non-manufacturing industry. These results suggest that the expansion of the non-manufacturing sectors in the industrial structure can potentially create regional economic disparities.

"Quantitative analysis on competition and productivity"

In this research, we estimated the Cobb-Douglas production function of a company, and analyzed competitive index, such as HHI, that affect the growth of total factor productivity. In the analysis of the system generalized method of moments, which solves the endogenous problem of explaining variables, market competition, which is represented by HHI raised TFP of firms in Japan. We believe that this empirical analysis can greatly contribute to improving the current Japanese competition policy.

"Have Main Banks Encouraged Corporate Restructuring?"

This paper analyzes the impact of main bank system on the speed of employment adjustment by using a panel dataset of firms in the manufacturing and non-manufacturing industry in the post-bubble period from 1991 to 1998. Estimations considering main bank effect show the results that main banks delay the speed of employment adjustment in promoted-manager firms in the manufacturing industry and both promoted-manager and owner-manager firms in the non-manufacturing industry.

"Development of Japanese Patent Stock and Citation-Weighted Patent Stock-An Application of HJT Model to Japanese Patent Data-"

This paper develops patent stock and citation-weighted patent stock using Japanese patent data. In constructing database, I refer to the method of the correction of truncation bias by Hall, Jaffe and Trajtenberg(2000,2001). However, due to the differences in patent systems between Japan and the United States, I cannot simply apply the method to Japanese data. I had to adjust the method suitable for Japanese patent system. In addition, I estimate the Cobb-Douglas production function including Japanese patent stock and citation-weighted patent stock obtaining significant results.

"Local Government Bond and Local Financial Institutions- Surveys on Local Financial Institutions and its Policy Implications -"

This paper discusses the current situation of the local government bond in Japan, and consideration and behavior of regional banks as lenders to local governments through questionnaire surveys and interviews. We also discuss reform of the local government bond system and the decentralization of the local finance.

"The ESRI Short-Run Macroeconometric Model of Japanese Economy (2006 version)-Basic Structure, Multipliers, and Economic Policy Analyses -"

This paper describes the basic structure and multipliers of the revised of the ESRI Short-Run Macroeconometric Model of the Japanese Economy, which was firstly released in 1998(Hori et al.[1998]).

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