Temporal changes in factor adjustment of the Japanese manufacturing industry
This study investigated temporal changes in factor adjustment of the Japanese manufacturing industry by applying a dynamic factor model, in which labor and capital were quasi-fixed to a panel of industries from 1972 to 2012. Estimations show that the adjustment speeds, with which factors approach th...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2022-12-01
|
| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2122191 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850185573539512320 |
|---|---|
| author | Sangho Kim |
| author_facet | Sangho Kim |
| author_sort | Sangho Kim |
| collection | DOAJ |
| description | This study investigated temporal changes in factor adjustment of the Japanese manufacturing industry by applying a dynamic factor model, in which labor and capital were quasi-fixed to a panel of industries from 1972 to 2012. Estimations show that the adjustment speeds, with which factors approach their optimum levels, have increased over the period. Particularly, factor adjustment rates have significantly increased since 2000. The estimations suggest that Japanese manufacturers have become more flexible in hiring workers and faster in making investments, which reduces adjustment cost significantly. This dynamic gain is ignored from static analysis, underestimating the benefit of labor market reform. The study suggests that policymakers should consider dynamic factor adjustment in assessing policy impacts accurately when implementing an industrial policy. |
| format | Article |
| id | doaj-art-7ab457b282d54ebe8d8e76a4f75e40c1 |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-7ab457b282d54ebe8d8e76a4f75e40c12025-08-20T02:16:40ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2122191Temporal changes in factor adjustment of the Japanese manufacturing industrySangho Kim0Professor of Economics, College of International Management, Ritsumeikan Asia Pacific University, Beppu, JAPANThis study investigated temporal changes in factor adjustment of the Japanese manufacturing industry by applying a dynamic factor model, in which labor and capital were quasi-fixed to a panel of industries from 1972 to 2012. Estimations show that the adjustment speeds, with which factors approach their optimum levels, have increased over the period. Particularly, factor adjustment rates have significantly increased since 2000. The estimations suggest that Japanese manufacturers have become more flexible in hiring workers and faster in making investments, which reduces adjustment cost significantly. This dynamic gain is ignored from static analysis, underestimating the benefit of labor market reform. The study suggests that policymakers should consider dynamic factor adjustment in assessing policy impacts accurately when implementing an industrial policy.https://www.tandfonline.com/doi/10.1080/23322039.2022.2122191adjustment costsdynamic dualityproductionJapanese manufacturingC61D20 |
| spellingShingle | Sangho Kim Temporal changes in factor adjustment of the Japanese manufacturing industry Cogent Economics & Finance adjustment costs dynamic duality production Japanese manufacturing C61 D20 |
| title | Temporal changes in factor adjustment of the Japanese manufacturing industry |
| title_full | Temporal changes in factor adjustment of the Japanese manufacturing industry |
| title_fullStr | Temporal changes in factor adjustment of the Japanese manufacturing industry |
| title_full_unstemmed | Temporal changes in factor adjustment of the Japanese manufacturing industry |
| title_short | Temporal changes in factor adjustment of the Japanese manufacturing industry |
| title_sort | temporal changes in factor adjustment of the japanese manufacturing industry |
| topic | adjustment costs dynamic duality production Japanese manufacturing C61 D20 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2122191 |
| work_keys_str_mv | AT sanghokim temporalchangesinfactoradjustmentofthejapanesemanufacturingindustry |