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"Informatization in Japan and Its Impact on Economic Growth," Chapter 11 of G. Wang (ed.), Treading Different Paths: Informatization in Asian Nations, Norwood, New Jersey, U.S.A.: Ablex Publishing Corp., 1994, pp.175-192.

[Outline]

The development of new information technology for production and other activities (i.e., informatization) has been a major source of the growth of the Japanese economy since 1970s. In order to analyze the economic effects of informatization on production and growth, we use a method called interindustry analysis (input-output tables). We consider products, services, and activities which are made possible by new information technology such as computers and optical fibers, and express them in an input-output framework so as to analyze how new information technology contributed to the development of industrial sectors. During the period from 1975 to 1985 in Japan, the contribution of information activities to the growth of the gross national product amounts to 20%, i.e., approximately 38 trillion yens (which is equal to the size of 60% of the total budget of the government of Japan in 1985 or the cost of constructing 100 million houses); in fact, the annual rate of growth of real GNP of Japan was accelerated by informatization by more than 1%.

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[Keywords]

information, communication, IT, economic growth, estimation, econometrics

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Hajime Oniki
ECON, OGU
09/02/2006
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