Japan's Sector Research Articles

A Comparison of the Wage Structure between the Public and Private Sectors in Japan

This paper compares the wage structure between the public and private sectors in Japan by using a large microdata set covering public and private sector employees. Rather than comparing overall wage levels, we examine the differences in relative wages by gender, age, education, and region. According to the estimation of wage functions, wage gaps by gender and educational attainment are smaller in the public sector than in private companies. The public sector’s age-wage profile is steeper than that of the private sector. Public sector wages are more compressed; the wages are relatively higher at the lower end of the wage distribution and relatively lower at the higher end. The regional wage differential is smaller in the public sector. As a result, the wage level of public sector workers is relatively higher in rural regions and relatively lower in large metropolitan regions. To ensure the efficient provision of public services, it is inappropriate to compare only average wages. We should carefully observe the differences in wage structure by individual characteristics and by region.

Comment on “Industry‐specific Real Effective Exchange Rates and Export Price Competitiveness: The Cases of Japan, China, and Korea”

Sato et al. (2013) represents a significant contribution to the literature. The novelty of their paper lies in the construction of a new dataset on industry-specific real effective exchange rates (REER) on a monthly basis from January 2005 to the present. The authors have convincingly demonstrated that REER differs not only between countries, but also across industries, a finding that would have slipped through the net of aggregate data analysis. The authors have used the industry-wise producer price index (PPI), instead of consumer price index (CPI), not only because the latter includes nontradables, but also because the former tends to vary across industries, reflecting interindustry differences in costs arising from differences in their exposure to exchange rate changes. In this context, industries with large import content are more sensitive to exchange rate changes than those with a large domestic content. It, thus, makes considerable sense to use the industry breakdown PPI data. However, exchange rate changes, in purchasing power parity (PPP) terms, can only be explained by the inflation differential. According to PPP, a currency with a relatively lower inflation rate would appreciate vis-a-vis currency with a higher inflation rate. Seen in these terms, one might still argue that CPI is more relevant for explaining exchange rate appreciations and depreciations, be they in nominal or real terms. The spotlight on the electric machinery industry is revealing. The results show that the Japanese electric machinery REER exhibits the largest depreciation among Japanese industries. This finding suggests that Japanese electric machinery should be enjoying substantial export price competitiveness. On the contrary, the Japanese electric machinery firms are suffering from worsening business performance and tougher competition in the export market. The explanation given by the authors is that Japan’s competitors in the electric machinery industry, especially the Korean firms, enjoy a much larger REER depreciation, and hence stronger export price competitiveness. This is further supported by the results of a factor decomposition analysis that attributes the Korean electric machinery export price competitiveness to a significant drop in domestic producer prices in Korea during the won appreciation period.

Fukushima Nuclear Disaster Implications for Japanese Agriculture and Food Chains

There are few publications on various impacts of Fukushima nuclear disaster on agri-food sector in Japan in English. Moreover, due to the scale of contamination and affected agents, impact’s multiplicities and evolution, spillovers, and long time horizon, and the lack of “full” information and models of analysis, the overall impacts of Fukushima disaster on agrarian and food sector is far from being completely evaluated. This paper tries to fill the gap and assesses diverse impacts of Fukushima nuclear disaster on Japanese agriculture and food chains. First, a framework of analysis is presented. Second, immediate and short-term radiation effects, and effects on nearby population, safety regulation and inspection system, markets and consumer’s behavior, agrarian and food products, and health, as well as economic impacts on farming and agri-businesses, are all assessed. Third, overall shorter and longer-term impacts on agriculture, food industries, and consumers in Fukushima region, neighboring regions, and other parts of Japan are estimated.

An Investigation of the Transformed Forestry Sector in Japan and Taiwan

An Investigation of the Transformed Forestry Sector in Japan and Taiwan

Unexpected tails in risk measurement: Some international evidence

Risk management critically depends on the assumptions made about the distribution of stock returns. This paper applies extreme value methods to investigate the limiting distribution of the extreme returns of the NIKKEI225, FTSE100 and S&P500 indices as well as the indices of some of largest sectors in Japan, UK and US. The results indicate that the much celebrated Generalised Extreme Value distribution does not provide the most accurate description of the minima since the Generalised Logistic distribution performs better due to its ability to better capture the fat tails of returns. The time varying nature of extremes is also confirmed while a simulation exercise adds to the robustness of our results. It is also shown that the findings may have important implications for risk models, such as VaR and Expected Shortfall, since risk measures which cannot capture the fatness of tails of the empirical distribution function of returns may lead to serious underestimation of downside risk.

Total-factor Energy Efficiency for Sectors in Japan

In this article, we measure the energy efficiency of 17 sectors in the Japanese economy during 1998–2005 using data envelopment analysis (DEA), in which a total-factor framework is applied. We compute the total-factor energy efficiency, which is defined as the ratio of the target energy input suggested by the DEA to the actual energy inputs in a sector. Energy, labor, and capital are the three inputs, while the value added in each sector is the single output. Our major finding is that remarkably energy-inefficient sectors in the Japanese economy include energy-intensive industries (i.e., pulp and paper, chemical, cement and ceramics, and primary metal sectors) as well as agriculture, forestry and fishery, transportation and communication, and miscellaneous manufacturing. There is much room to improve energy efficiency in Japanese industrial sectors. Moreover, for 8 sectors, including energy-intensive industries, the inefficiency of energy use is much worse than that of other resource usage.

Ground and satellite observations of low‐latitude red auroras at the initial phase of magnetic storms

We report ground and satellite observations of unique low‐latitude red auroras that appear at the initial phase of geomagnetic storms. For two events on 21 October 2001, and 6 April 2000, the low‐latitude red auroras appeared at ~45° MLAT (L ∼ 2) ∼ 1.5 h after the storm sudden commencement in the postmidnight sector in Japan. Comprehensive satellite data were available for the former event. The energetic neutral atom images obtained by the Imager for Magnetopause‐to‐Aurora Global Exploration satellite show rapid enhancement of ring current hydrogen and oxygen fluxes at radial distances of ∼ 2–8 RE after the storm sudden commencement and associated with several storm‐time substorms. The hydrogen ring‐current enhancement occurred particularly in the postmidnight sector where the red aurora was observed. The timing of oxygen flux enhancement associated with a storm‐time substorm coincided with the red aurora appearance. This rapid and significant enhancement of energetic neutral atom flux was also confirmed by energetic ion data obtained by the NOAA/POES‐16 satellite. Extreme ultraviolet plasmaspheric images obtained by Magnetopause‐to‐Aurora Global Exploration indicate that the plasmapause was located at L = 2.3–2.5 in the postmidnight sector during the event, indicating that a spatial overlap occurs between the plasmasphere and the enhanced ring current ions at L ∼ 2. Based on these observations, we suggest that large energization of high‐energy ring‐current ions in the postmidnight inner magnetosphere caused the spatial overlap of these ring‐current ions with the low‐energy plasmaspheric plasmas at L ∼ 2, producing the low‐latitude red auroras at the very beginning of the storms.

東アジアにおける食料品貿易の構造

As Japanese domestic food market shrinks, it becomes more important for food and agricultural sectors in Japan to acquire foreign market, especially in East Asia. If Japanese food export expands, Japanese food trade will become bilateral, which is intra-industry trade. In this paper, the structure of the food trade in East Asia is analyzed from the viewpoint of intra-industry trade. The Grubel-Lloyd index of the trade flows of 12 countries / regions are calculated and the factors affecting the level of the index are investigated with tobit regression models. Brülhart's A index is also calculated in order to analyze the changes in the intra-industry trade. It is considered that as the differences in income per capita among countries / regions get smaller, the intra-industry trade in East Asia will be promoted.

The architecture of transaction networks: a comparative analysis of hierarchy in two sectors

Many products are manufactured in networks of firms linked by transactions, but comparatively little is known about how or why such transaction networks differ. This article investigates the transaction networks of two large sectors in Japan at a single point in time. In characterizing these networks, our primary measure is hierarchy, defined as the degree to which transactions flow in one direction, from to downstream. Our empirical results show that the electronics sector exhibits a much lower degree of hierarchy than the automotive sector because of the presence of numerous inter-firm transaction cycles. These cycles, in turn, reveal that a significant group of firms have two-way permeable boundaries: (i) they participate in multiple stages of an industry's value chain, hence are vertically integrated, but also (ii) they allow both downstream units to purchase intermediate inputs from and upstream units to sell intermediate goods to other sector firms. We demonstrate that the 10 largest electronics firms had two-way vertically permeable boundaries while almost no firms in the automotive sector had adopted that practice. Copyright 2012 The Author 2012. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

日本のTPP参加と農業改革·産業構造調整

How to escape from the “lost decades” is the most important economic policy target in Japan. For this target, we have to raise growth potentials. It is crucially important to destroy the vested interest structure in Japan for shifting from a stagnant economy to a dynamic one. For example, agriculture sector is a typical example of a vested interest sector in Japan. Reviewing the postwar experiences, I conclude private dynamism is the root cause of Japan’s high growth. Foreign competition, real or future competition, plays important role in destroying the vested interest structure and improving the efficiency of economic management in Japan.

Farmland Liquidization and Transaction Costs

This paper discusses why progress in farmland liquidization through leasing has been very slow in the agricultural sector in Japan, focusing on the transaction costs related to farmland lease. First, this paper points out that transaction costs are an important constraint for farmland lease, and argues by means of a survey of related studies, why transaction costs have a strong association with farmland. Next, it explores using partial equilibrium analysis to determine how the aggregated demand and supply of farmland is affected by the changes in the farmers’ activities that face a transaction cost. Following this, the paper estimates the extent to which farmland lease is affected by the characteristics of the farmland and local communities. The data used in the analysis is the prefectural panel data from the agricultural census for the years 1980, 1990, and 2000; the data excludes Hokkaido, Tokyo, Kanagawa, Osaka, and Okinawa. The result of the econometric analysis shows that the level of farmland lease is related to the variables representing the activities of local communities and the characteristics of farmland such as land improvement and conversion of farmland. These results emphasize the importance of developing and reinforcing institutions and organizations to lower the transaction costs in the farmland market.

COST-EFFECTIVENESS OF CO2 EMISSION REDUCTIONS BY ENERGY-EFFICIENT WATER HEATERS

The energy consumption for water heating accounts for approximately 20% of the CO2 emissions in the residential sector in Japan. Despite the high expectation of low CO2 emission, energy-efficient (EE) water heaters are not yet widely used. This study elaborates the cost-benefit of EE water heaters and derives the marginal abatement cost curve. We assume three cases; high efficiency without changing the energy source (case 1), high efficiency by shifting to electrification (case 2), and high efficiency by choosing the energy source (case 3). The result shows that CO2 emissions can be reduced by up to approximately 63% in the cases 2 and 3, whereas approximately 25% in the case 1. Moreover, the optimization analysis reveals the cost-effective breakdown of water heaters under the CO2 constraints. The larger the rates of CO2 emissions reduction are, the more the share of the EE water heaters, especially the share of CO2 refrigerant heat-pump-type water heaters remarkably increases.

Emission of Greenhouse Gases in the Agriculture Sector in Japan and their Reduction

Emission of Greenhouse Gases in the Agriculture Sector in Japan and their Reduction

Pollution from the electric power sector in Japan and efficient pollution reduction

Under the scheme of the Kyoto Protocol, there are plans for the efficient reduction of carbon dioxide emissions. In the electric power sector, nuclear power generation, which emits no carbon dioxide in the process of generating electricity, has come under scrutiny. However, this energy produces a new environmental issue: the disposal of radioactive waste. First, we derive shadow prices of carbon dioxide and low-level waste as marginal abatement costs in the case of the electric power sector in Japan, employing a directional output distance function. It is found that the shadow prices are US$39 per tonne for carbon dioxide and US$1531 per liter for low-level waste. Secondly, we calculate the indirect Morishima elasticity between carbon dioxide and low-level waste in order to identify their substitutability, and it is found that the substitution of low-level waste for carbon dioxide is easier than the reverse. This result suggests that, with the amount of generated electricity fixed, carbon dioxide can be substituted more easily by low-level waste when the relative price of carbon dioxide increases, for example, as a result of implementation of a carbon dioxide tax or an emissions trading system.

Prostitution and the 1960s' origins of corporate entertaining in Japan

Synopsis It is the strong contention of the ‘Japan studies’ literature that corporate entertaining is not generally connected to the prostitution of women in Japan. White collared men are described as enjoying mere ‘sexual titillation’ in their patronage of hostess venues for after-hours wining and dining. I argue against this contention through examining the historical development of corporate entertaining as a practice of middle class Japanese men. This examination shows the 1960s' origins of corporate entertaining to be fundamentally intertwined with the development of the sex industry sector in Japan that trades women as ‘hostesses’. I look at the impact of this development on working class Japanese women, and give evidence of their prostitution, trafficking, and murder in hostess venues in the 1960s and 1970s.

GAS AND POWER: Earthquake continues to affect power sector in Japan

Oil and Energy TrendsVolume 36, Issue 6 p. 7-8 GAS AND POWER: Earthquake continues to affect power sector in Japan First published: 27 September 2011 https://doi.org/10.1111/j.1744-7992.2011.00120.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Volume36, Issue6June 2011Pages 7-8 RelatedInformation

Japanese social enterprises: major contemporary issues and key challenges

PurposeThe purpose of this paper is to discuss the emergence of social enterprise in Japan by looking at the predominant types of social enterprise in the country, their industries and target groups, their challenges and strength.Design/methodology/approachThe paper adopts an analytical approach, building on previous work; it is grounded on the social construction theory, which has the advantage of apprehending social phenomena from different viewpoints.FindingsThe study identifies three different conceptual approaches to explain the emergence of social enterprise in Japan. It then demonstrates that there exists a link between the approaches identified and the emerging social enterprise types in the country. Furthermore, it discusses the strategies used by those emerging social enterprise types in choosing their particular legal forms (in the absence of a specific legal form for social enterprise in Japan) and shows how this choice is normally determined by the constraints associated with those organisational forms. From this perspective, the paper outlines the major contemporary issues affecting social enterprises in Japan and focuses on two key challenges: the systems of regulation and the financial viability. In discussing the financial challenge it presents the dual attitude of the Japanese government towards the development of the social enterprise sector.Originality/valueThis paper builds up the theoretical foundations for the understanding of the social enterprise sector in Japan and it will stimulate further researches on the future development of the sector.

The Architecture of Transaction Networks: A Comparative Analysis of Hierarchy in Two Sectors

Many products are manufactured in networks of firms linked by transactions, but comparatively little is known about how or why such transaction networks differ. This paper investigates the transaction networks of two large sectors in Japan at a single point in time. In characterizing these networks, our primary measure is “hierarchy,” defined as the degree to which transactions flow in one direction, from “upstream” to “downstream.” Our empirical results show that the electronics sector exhibits a much lower degree of hierarchy than the automotive sector because of the presence of numerous inter-firm transaction cycles. These cycles, in turn, reveal that a significant group of firms have two-way “vertically permeable boundaries”: (1) they participate in multiple stages of an industry’s value chain, hence are vertically integrated, but also (2) they allow both downstream units to purchase intermediate inputs from and upstream units to sell intermediate goods to other sector firms. We demonstrate that the 10 largest electronics firms had two-way vertically permeable boundaries while almost no firms in the automotive sector had adopted that practice.

Modal choice between air and rail: a social efficiency benchmarking analysis that considers CO2 emissions

The problem of modal choice between rail and air arises as public awareness of carbon dioxide (CO2) emissions by the transportation sector rises. In this paper, we answer this question quantitatively by performing an efficiency benchmarking analysis that takes into account life-cycle CO2 emission due to transport service provision. The paper employs nonparametric efficiency estimation methods, namely a slacks-based inefficiency measure, as well as a more conventional directional distance function approach. We apply them to a panel data set for three major railway companies and the aviation sector in Japan for the period from 1999 to 2007. Results shows that, contrary to the common argument, air transport can still be more socially efficient than rail transport, even when the environmental load due to CO2 emission is incorporated. This is due to the aviation sector’s extremely low user cost, measured in terms of in-vehicle time. In other words, aviation is a necessary transportation mode for those with a very high willingness to pay for their time.

Ethical climate in nonprofit and government sectors: the case of Japan

PurposeThis is a study of ethical climates in nonprofit and government sectors in Japan, the aim of which is to determine the extent to which similarities (and differences) exist in ethical climate dimensions, what drives the differences and what are the implications for the sectors in this country.Design/methodology/approachUsing survey data and structural equation modeling techniques, the factors structure equivalence and measurement invariance of ethical climates in the two sectors were tested. The original sample was made by 1,012 participants (500 public officials and 512 nonprofit executive directors). Due to some missing values, a net sample of 441 questionnaires (for nonprofit) and 321 questionnaires (for government) were used for the final analysis.FindingsResults of this study indicate that there was a significant overlap in shared perception of all ethical climates in the two sectors. There should be an effort to continue building on these commonalities so as to provide an effective framework to build trusting relationships between the two sectors.Practical implicationsThis study provides important insights that would allow policy makers in government to better understand the implications of using nonprofit partners to deliver services. It would also provide a theoretical and empirical starting point from which government‐nonprofits relationships in Japan can be better understood.Originality/valueThis was the first time that such a type of research was conducted in Japanese nonprofit and government sectors. Furthermore, among all the empirical studies on ethical climate, this is based on one of the largest sample of respondents in both sectors.