Yamamura, Eiji and Shin, Inyong (2010): Heterogeneity, trust, human capital and productivity growth: Decomposition analysis.
Download (546Kb) | Preview
This paper uses panel data from Japan to decompose productivity growth measured by the growth of output per labor unit into three components of efficiency improvement, capital accumulation and technological progress. It then examines their determinants through a dynamic panel model. In particular, this paper focuses on the question of how inequality, trust and humans affect the above components. The main findings derived from empirical estimations are: (1) Inequality impedes not only improvements in efficiency but also capital accumulation. (2) A degree of trust promotes efficiency improvements and capital accumulation at the same time. However, human capital merely enhances improvements in efficiency.
|Item Type:||MPRA Paper|
|Original Title:||Heterogeneity, trust, human capital and productivity growth: Decomposition analysis|
|Keywords:||Heterogeneity, Inequality, Trust, Data envelopment analysis|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E25 - Aggregate Factor Income Distribution
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||eiji yamamura|
|Date Deposited:||17. Jan 2010 18:10|
|Last Modified:||13. Feb 2013 11:16|
Alesina,A. and R. Perotti., 1996. Income distribution, political instability, and investment. European Economic Review 40, pp.1203-1228.
Alesina,A. and E. La Ferrara., 2000. Participation in heterogeneous communities. Quarterly Journal of Economics 115, pp.1203-1228.
Alesina, A. and E. La Ferrara. 2002. Who trust others? Journal of Public Economics 85. pp.207-234.
Alesina, A., A. Devleeschauwer., W. Easterly., S.Kurlat., and R.Wacziag. 2003. Fractionalzation.. Journal of Economic Growth 8. pp.155-194.
Arellano, M., 2003. Panel Data Econometrics: Advanced Texts in Econometrics. Oxford University Press, New York.
Baltagi, B., 2005. Econometric Analysis of Panel Data. Chippenham, John Wiley and Sons.
Banerjee, A. and E. Duflo., 2003. Inequality and growth: What can the data say? Journal of Economic Growth 8, pp.267-299.
Banker R D A, A. Charnes, and W.W. Cooper, 1984. Models for estimating technical and scale efficiencies. Management Science 30, pp.1078-1092.
Barro, R.J., 2000. Inequality and growth in a panel of countries. Journal of Economic Growth 5,pp. 5-32.
Barro, R. J. and X. Sala-i-Martin, 1992, "Regional Glowth and Migration: A Japan-United States Comparison," Journal of the Japanese and International Economies 6, pp.312-346.
Coleman, J.S., 1990. Foundation of Social Theory, Harvard University Press, Cambridge, MA.
Cooper W W, M.S. Lawrence., and K.Tone., 2000. Data Envelopment Analysis. Boston ,Kluwer Academic Press.
Easterly,W. and R. Levine., 1997. Africa's growth tragedy: policies and ethnic divisions. Quarterly Journal of Economics 112, pp.1203-50.
Färe R, S. Grosskopf., M. Norris., and Z. Zhang., 1994. Productivity growth, technical progress, and efficiency change in Industrialized Countries. American Economic Review 84, pp.66-83.
Färe R, S. Grosskopf., and P. Roos., 1996. On two definitions of productivity. Economics Letters 53, pp.269-274.
Forbes, K., 2000. A reassessment of the relationship between inequality and growth. American Economic Review 90, pp.869-886.
Fujita, M. and T. Tabuchi, 1997, Regional Growth in Postwar Japan, Regional Science and Urban Economics 27, pp.643-670.
Fukuyama, F., 1995. Trust: Social Virtues and the Creation of Prosperity. The Free Press.
Granovetter, M., 1985. Economic action and social structure: the problem of embeddedness. American Journal of Sociology 23, pp.481-510.
Guiso, L.G., P. Sapienza., and L. Zingales., 2004. The role of social capital in financial development. American Economic Review 94, pp. 526-556.
Hall, R.E. and C.I. Jones., 1999. Why do some countries produce so much more output per worker than others? Quarterly Journal of Economics 114. pp.83-116.
Hayami, Y., 2001. Development Economics: From the Poverty to the Wealth of Nations. Oxford University Press, New York.
Index Corporation., 2006. Chiiki toukei 2006 (CD-ROM edition), Index corporation, Tokyo.
Japan Broadcasting Corporation ( Nihon hoso kyokai )., 1979; 1996. Zenkoku kenmin ishiki chosa. Japan Broadcasting Corporation Press : Tokyo.
Kaldor, N., 1956. Alternative theories of distribution. Review of Economic Studies 23, pp.83-100.
Kawagoe, M., 1999, Regional Dynamics in Japan: A Reexamination of Barro Regressions, Journal of the Japanese and International Economics 13, pp.61-72.
Keefer, P. and P. Knack., 2002. Polarization, politics and property rights: Links between inequality and growth. Public Choice 111, pp.127-154.
Knack, S. and P. Keefer., 1997. Does social capital have an economic payoff? A cross-country investigation. Quarterly Journal of Economics 114, pp.83-116.
Knack, S., 1997.Groups, growth and trust: Cross-country evidence one the Olson and Putnam hypothesis. Public Choice 117, pp.341-355.
Kruger J., 2003. The Global Trends of Total Factor Productivity. Evidence from the Nonparametric Malmquist Index Approach. Oxford Economic Papers 55, pp.265-286.
Kumar, S. and R. Russell., 2002. Technological change, technological Catch-up, and capital deepening: Relative Contributions to Growth and Convergence. American Economic Review 92, pp.527-548.
Lassen, D.D., 2007. Ethnic divisions, trust, and the size of the informal sector. Journal of Economic Behavior and Organization 63, pp.423-438.
Li, H. and H. Zou., 1998. Income inequality is not harmful for growth: Theory and evidence. Review of Development Economics 2, pp.318-334.
Mo, P.H., 2000. Income inequality and economic growth. Kyklos 53, pp.293-316.
Montalvo, J.G. and M. Reynal-Querol., 2005. Ethnic Diversity and Economic Development. Journal of Development Economics 76, pp.293-323.
Putnam., 2000. Bowling alone: The collapse and revival of American community, A Touchsotne book, New York.
Perotti, R., 1996. Growth, income distribution, and democracy: What the data say. Journal of Economic Growth 1, pp.149-187.
Persson, T. and G. Tabellini., 1994. Is inequality harmful for growth? American Economic Review 84, pp.600-621.
Quah, D., 1993. Empirical cross-section dynamics in economic growth, European Economic Review 37, pp.426-434.
Schumpeter, J., 1912. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, and Business Cycle. Oxford University Press, New York.
Spagnolo, G., 1999. Social relations and cooperation in organization. Journal of Economic Behavior and Organization 38, pp.1-25.
Statistics Bureau of the Ministry of Internal Affairs and Communications., various years. Zenkoku shohi zhittai chosa.
Sukiassyan, G., 2007. Inequality and growth: What does the transition economy data say?. Journal of Comparative Economics 35, pp.35-56.
Vigdor, J.L., 2004. Community composition and collective action: Analyzing initial mail response to the 2000 census. Review of Economics and Statistics 86, pp. 303-312.
Yamamura, E., 2008. The Effects of Inequality, Fragmentation, and Social Capital on Collective Action in a Homogeneous Society: Analyzing Responses to the 2005 Japan Census. Journal of Socio-economics 37(5), pp.2054-2058.
Yamamura, E. and I. Shin., 2007a. Technological change and catch-up and capital deepening: Relative contributions to growth and convergence: Comment. Economics Bulletin. 15 (3), pp.1-8.
Yamamura, E. and I. Shin., 2007b. Dynamics of agglomeration economies and regional industrial structure: The case of the assembly industry of the greater Tokyo region, 1960-2000. Structural Change and Economic Dynamics 18, pp.483-499.
Yamamura, E. and I. Shin., 2008., The benefit of efficiency improvement on growth and convergence: A study using Japan panel data. Economics Letters 99(1), 209-211.
Yamamura, E., T. Sonobe., and K. Otsuka., 2005. Time path in innovation, imitation, and growth: the case of the motorcycle industry in postwar Japan. Journal of Evolutionary Economics 15, pp.169-186.
Zak, P. and S. Knack., 2001. Trust and Growth. Economic Journal 111, pp.295-321.
Zheng, J., X. Liu., and A. Bigsten., 1998. Ownership structure and determinants of technical efficiency: An application of data envelopment analysis to Chinese enterprises (1986-1990). Journal of Comparative Economics 26, pp.465-484.
Zheng, J., X. Liu., and A. Bigsten., 2003. Efficiency, technical progress, and best practice in Chinese state enterprises (1980-1994), Journal of Comparative Economics 31, pp.134-152.