Structure of Production, Economic Policy and Performance: the case of Japan, the Republic of Korea and the USA

Abstract

Using input–output tables as well as a number of indices, this paper attempts to ascertain the degree of similarity of the structures of production of Japan, the Republic of Korea and the United States. The results indicate that Japanese and Korean economies are more similar than Japanese and US or Korean and US economies. There are two possible explanations for the similarity of the structures of production of Asian nations. First, technology transfer from Japan to Korea may have contributed to the similarity of the prevailing technologies in these nations. Secondly, the active industrial policies of Japanese and Korean governments over the past several decades may have played an important role in the structures and performances of these economies.