"Service Sector Productivity in Japan: Determinants and Policy" is an ambitious research project at the Institute of Economic Research, Hitotsubashi University that aims to drastically improve the measurement of real service sector output and productivity to develop a new approach to the study of service sector activity. The project seeks to make a substantial contribution to global research on the measurement of, and policies to raise, service sector productivity.



“Human Capital and Economic Growth in Japan: 1885–2015" by Kyoji Fukao, Tatsuji Makino, and Tokihiko Settsu has been published in the Journal of Economic Surveys (doi.org/10.1111/joes.12419). 


The article examines the sources of Japan's economic growth over the period 1985–2015 and, among other things, clarifies the role of the movement of production factors to the non-primary sector, including the service sector.  


“The Causes of Japan’s Economic Slowdown: An Analysis Based on the Japan Industrial Productivity Database” by Kyoji Fukao, YoungGak Kim, and HyeogUg Kwon has been published  in the International Productivity Monitor (csls.ca/ipm/40/IPM_40_Fukao.pdf). 


The study examines the causes of the sluggish investment in capital services in the non-manufacturing sector since the mid-2000s and compares the sources of economic growth of Japan, the United States, Germany, France, and the United Kingdom. Moreover, the study finds that the main cause of the sluggish TFP growth in the non-manufacturing sector during 2005–2015 was the sharp decline in TFP growth in the wholesale industry and in the electricity industry – the latter due to the shutdown of nuclear power plants in the wake of the Tohoku earthquake.


The Japan Industrial Productivity (JIP) Database 2021, which provides basic data for the measurement of productivity in Japan's service sector, was released.



The following blog post has now been published.

Fukao, Kyoji and Saumik Paul “Baumol, Engel, and Beyond: Accounting for a century of structural transformation in Japan, 1885-1985” 


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