ESRI Discussion Paper Series No.277
IT capital stock tells a little about the growth of Japanese industries:
Industry-level evidence on the economic impact of investment in information technology

Professor, Kyushu University(Visiting Research Fellow, Economic and Social Research Institute, Cabinet Office)
Shigehiro KUBOTA
Researcher, InfoCom Research, Inc.

The full text is written in Japanese.


The purpose of this paper is to examine the industry-level impact of investment in information technology. For this purpose we firstly create time series data of IT investment, and consequently, the IT capital stock by 22 industries. Secondly, we estimate two types of production function models by industry. Model 1 incorporates capital deepening of IT and Model 2 incorporates IT capital ratio to non-IT capital stock. This analysis reveals that IT capital stock significantly effected the economic growth in just 4 industries, e.g. precision instruments, real estate, transport and telecommunication, and service, but not in other 18 industries. Thus, it can be concluded that the Japanese industries have not reap the full benefit of information technology yet.

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