Journal of Engineering and Applied Sciences

Year: 2017
Volume: 12
Issue: 4
Page No. 974 - 980

An Analysis of Japanese Industrial Structure Using Input-Output Table

Authors : Hiroyuki Matsuoka

Abstract: The input-output table are widely recognized for the usefulness and importance in the analysis of industrial structure and for economic forecasting. They are developed by Dr. Leontief, a US Nobel laureate economist. Using 2011 input-out table of Japan (most recent version, 2015 publication) compiled by the ministry of internal Affairs and communications of Japan, this research discussed the relationship between “index of power of dispersion” and “index of sensitivity of dispersion” of each industry. Furthermore, it calculated production inducement by consumption, investment and export, ripple effect to added value and ripple effect to employment. Particularly an adjustment research related to the number of section was necessary when calculating ripple effect to the employment. That is because industrial classification is different from each other, the table of total employee number according to production activity section and the basic transaction table. Furthermore, this research focuses on 13 industries with processing the data, therefore we can see all table from a coherent viewpoint and easily understand industrial structure. Fact finding is that both influence degree on other industries and response degree from other industries are the biggest in the case of “Manufacturing industry” compared to other industries. Moreover, in production inducement by export, “Manufacturing industry” produces most amount of production. About ripple effect to employment, consumption for “Services” produces the most employment and “Construction” and “Manufacturing” have the biggest value in investment and export, respectively. This research reached the conclusion that “Manufacturing” industry is extremely crucial in respect of overall production in Japan and in particular, consumption for “Services” should be emphasized for Japan’s employment policy.

How to cite this article:

Hiroyuki Matsuoka , 2017. An Analysis of Japanese Industrial Structure Using Input-Output Table. Journal of Engineering and Applied Sciences, 12: 974-980.

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