Capital, Labour, Material and R&D Investment in Japan: The Issue of Double-Counting

Annales d'Economie et de Statistique, Vol. 58, No. 7, pp. 165-184, 2000

20 Pages Posted: 31 May 2011

See all articles by Marga Peeters

Marga Peeters

De Nederlandsche Bank

Paul Ghijsen

Open University of the Netherlands

Date Written: May 30, 2000

Abstract

R&D components are investigated in dynamic factor demand models using pooled Japanese data. Models without R&D, with R&D (double or) wrongly counted and (once or) correctly counted are compared by means of GMM estimates, (non-)nested GMM tests and residual analyses. The results indicate that R&D contributes significantly to the explanation of capital, labour, energy and materials demand in the Japanese manufacturing industry. Double-counted R&D is even preferred to not incorporating R&D as a separate production factor. After including R&D as a production factor and correcting for double-counting, there is however no unambiguous answer to the question which model utilizes the information of R&D best.

Keywords: factor demand, research and development, investment, capital, labour

JEL Classification: C32, D21, D92, R32

Suggested Citation

Peeters, Marga and Ghijsen, Paul, Capital, Labour, Material and R&D Investment in Japan: The Issue of Double-Counting (May 30, 2000). Annales d'Economie et de Statistique, Vol. 58, No. 7, pp. 165-184, 2000, Available at SSRN: https://ssrn.com/abstract=1855476

Marga Peeters (Contact Author)

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Paul Ghijsen

Open University of the Netherlands ( email )

P.O. Box 2960
Heerlen, 6401DL
Netherlands

HOME PAGE: http://www.ou.nl/managementwetenschappen

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