Temporal changes in factor adjustment of the Japanese manufacturing industry

Figures & data

Table 1. Coefficient estimates of dynamic factor demand for Japanese manufacturing industry

Equation	Variable	Model
		1973–1989		1990–2000		2001–2012
y	c1/p	103.97	(7.525)	223.66	(14.72)	142.42	(21.06)
	c2/p	65.53	(15.22)	−114.72	(26.53)	24.01	(25.89)*
	v/p	30.46	(8.614)	120.44	(24.77)	120.47	(37.29)
	${\text{rK}}_1-{\text{K}}_1$	1.522	(2.279)*	10.02	(2.223)	−23.76	(2.734)
	${\text{rK}}_2-{\text{K}}_2$	1.344	(0.203)	0.013	(0.202)*	−1.314	(0.225)
	$\mathrm{r}\mathrm{t}-1$	4.174	(0.177)	0.865	(0.261)	−1.070	(0.511)
	Const.	−326.88	(13.84)	−70.82	(20.41)	81.55	(40.18)
	R^2	0.948		0.992		0.981
m	c1/v	62.05	(4.575)	115.65	(11.53)	55.82	(15.83)
	c2/v	35.01	(9.361)	−72.46	(21.07)	24.08	(17.89)*
	p/v	−32.35	(3.153)	1.235	(18.56)*	17.24	(22.73)*
	${\text{rK}}_1-{\text{K}}_1$	1.021	(1.450)*	7.487	(1.797)	−11.76	(1.760)
	${\text{rK}}_2-{\text{K}}_2$	0.839	(0.129)	0.082	(0.164)*	−1.343	(0.145)
	$\mathrm{r}\mathrm{t}-1$	2.369	(0.113)	0.441	(0.210)	−0.660	(0.331)
	Const.	−182.73	(8.930)	−32.22	(16.89)*	53.72	(26.57)
	R^2	0.953		0.990		0.981
${\text{K}}_1$	c1/c2	0.423	(0.076)	2.144	(0.748)	2.589	(0.251)
	c2/c1	−0.024	(0.014)*	0.067	(1.909)*	−0.662	(0.237)
	p/c1	0.032	(0.027)*	4.488	(4.708)*	−1.093	(0.849)*
	p/c2	−0.534	(0.264)	−5.436	(5.094)*	2.940	(1.757)*
	v/c1	−0.044	(0.055)*	−2.472	(4.825)*	2.825	(0.974)
	v/c2	−0.194	(0.353)*	3.140	(5.008)*	−6.859	(1.841)
	K1,t-1	−0.124	(0.013)	−0.169	(0.019)	−0.357	(0.030)
	K2,t-1	−0.001	(0.001)*	−0.003	(0.002)*	0.000	(0.002)*
	$\mathrm{r}\mathrm{t}-1$	0.018	(0.003)	0.006	(0.007)*	−0.003	(0.009)*
	Const.	−0.547	(0.583)	−0.547	(0.583)*	0.310	(0.690)*
	R^2	0.352		0.721		0.475
${\text{K}}_2$	c1/c2	3.521	(0.781)	29.418	(8.808)	−0.432	(3.361)*
	c2/c1	−0.017	(0.142)*	1.803	(22.49)*	1.081	(3.178)*
	p/c1	−0.223	(0.269)*	−161.08	(55.44)	−14.09	(11.39)*
	p/c2	−6.926	(2.669)	147.54	(59.93)	22.80	(23.57)*
	v/c1	0.593	(0.552)*	197.04	(56.82)	17.46	(13.07)*
	v/c2	−1.645	(3.612)*	−172.39	(58.90)	−16.45	(24.69)*
	K1,t-1	0.266	(0.136)	−0.130	(0.218)*	1.378	(0.404)
	K2,t-1	−0.077	(0.006)	−0.102	(0.020)	−0.173	(0.022)
	$\mathrm{r}\mathrm{t}-1$	0.440	(0.028)	0.100	(0.082)*	−0.436	(0.116)
	Const.	−34.275	(2.197)	−9.096	(6.787)*	34.53	(9.254)
	R^2	0.728		0.648		0.482

Notes: *Except those denoted by star, all the variables are statistically significant at the 5% significance level. Standard errors are in parentheses. All the models include industry dummy as fixed effects.

Table 2. Hypothesis tests of production structure for Japanese manufacturing industry

Null hypotheses	Period			Critical value
	1973–1989	1990–2000	2001–2012
Instantaneous adjustment of labor: $r+B_{11}=-1$	1399	651.7	309	${\chi }_{1,.01}^2=6.63$
Independent adjustment of labor: $B_{12}=0$	7.14	6.59	11.85	${\chi }_{1,.01}^2=6.63$
Instantaneous adjustment of capital: $r+B_{22}=-1$	2640	670.7	11.84	${\chi }_{1,.01}^2=6.63$
Independent adjustment of capital: $B_{12}=0$	−15.75*	0.92*	613.3	${\chi }_{1,.01}^2=6.63$
No technological change $H_i=0,i=1,2,3,4$	438	11.18	14.78	${\chi }_{4,.01}^2=13.3$
No disembodied technological change in labor: $H_3=0$	57.94	2.06*	0.14*	${\chi }_{1,.01}^2=6.63$
No disembodied technological change in capital: $H_4=0$	323.3	2.46*	13.17	${\chi }_{1,.01}^2=6.63$

Notes: *Except those denoted by star, all the null hypotheses are rejected at the 5% significance level.

Table 3. Coefficient estimates of adjustment matrix and its eigenvalues for Japanese manufacturing industry for selected periods

Adjustment matrix	Period
	1973–1989	1990–2000	2001–2012
$M_{11}\left(=r+B_{11}\right)$	−0.1242	−0.1687	−0.3567
$M_{12}$	−0.0009*	−0.0027*	−0.0005*
$M_{21}$	0.2665	−0.1301*	1.3776
$M_{22}\left(=r+B_{22}\right)$	−0.0770	−0.1021	−0.1726

Notes: *Except those denoted by star, all the coefficients of adjustment matrix are significant at the 5% significance level.

Figure 1. Temporal changes in factor adjustment in the Japanese manufacturing industry.

Note: Vertical axis represents the absolute values of factor adjustment rates.