Abstract

AbstractUsing 1880 s panel data from Yamanashi and Gifu prefectures in Japan, we estimated the diffusion factors and total factor productivity (TFP) in machine‐reeling technology in Japan's silk‐reeling sector. While the cost of distance through the traditional highway from the Shimosuwa‐shuk post town in the Nagano Prefecture has a negative correlation with technology diffusion, the correlation of silk production per population is positive. Machine‐reeling technology is raw‐material‐intensive and does not show increasing returns to scale. While the TFP in Yamanashi is higher than in Gifu, machine‐reeling output expansion is larger in the latter.

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