The role of production organization, infrastructure, and R & D in the catching-up process of Japanese to German industries


Conrad, Klaus ; Wastl, Dieter


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URL: https://madoc.bib.uni-mannheim.de/1056
URN: urn:nbn:de:bsz:180-madoc-10563
Document Type: Working paper
Year of publication: 1996
The title of a journal, publication series: Discussion Papers / Institut für Volkswirtschaftslehre und Statistik
Volume: 541
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series: Institut für Volkswirtschaftslehre und Statistik > Discussion Papers
Subject: 330 Economics
Classification: JEL: L2 O57 L6 C51 D24 ,
Subject headings (SWD): Deutschland , Japan , Vergleich , Infrastruktur , Forschung und Entwicklung
Abstract: This paper presents an empirical study of productivity comparison between Japan and Germany with focus on the R&D and infrastructure. By using time-series datasets from auto vehicle industry and electronic engineering industry, the study shows the reversal of productivity advantage from Germany to Japan around 1980. We argue that Japanese productivity gains are from better infrastructure and cost-reducing innovations such as lean production methods. An econometric model determines the causes for the observed differences in the quantities of inputs used. It shows that frequent external procurement among Japanese manufactures has shifted the factor inputs from labor and capital to material, a result which is in line with the philosophy of lean production.
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