The system GMM estimator in dynamic panel data models which combines two moment conditions, i.e., for the differenced equation and for the model in levels, is known to be more efficient than the first-difference GMM estimator. However, an initial optimal weight matrix is not known for the system...

This study analyzes the cause of the slowdown in Japan's TFP growth during the 1990s. Many preceding studies, examining the issue at the macro- or industry-level, have found that the slowdown was primarily due to the stagnation in TFP growth in the manufacturing sector. Using establishment level...

This paper estimates the contribution of R&D spillovers to productivity growth Japanese manufacturing industry by estimating two alternative measures of productivity growth and two different types of R&D spillovers. The results suggest that TFP growth is affected neither by rent R&D spillovers...

This paper examines the link between Japanese universities' education and research and productivity growth in industry, using a newly available data set on 12 Japanese industries for the period between 1973 and 1998. We obtain empirical evidence showing that the supply of highly educated human...