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 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...

We develop a model of the location of global R&D investments by multinational firms, where research investments increase the number of varieties of goods sold globally by the firm, and development activities reduce the cost of producing existing varieties in specific countries. Intellectual...