Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Bank of Japan : (Research Paper) A structural factor analysis on Japan's industrial production

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/25/2013 | 11:22am CEST

July 25, 2013
Yusuke Kumano*
Ichiro Muto**
Akihiro Nakano***

Abstract

Since the mid-2000s, Japan's industrial production (IP) has been characterized by increasing volatility. To examine the background to this, we apply the structural factor analysis developed by Foerster, Sarte, and Watson (2011) and decompose variations in Japan's IP into aggregate and sectoral shocks taking input-output relationships between sectors into account. We find that aggregate shocks explain most of the fluctuations in Japan's IP and are highly correlated with variations in overseas economic growth, especially since the early 2000s. However, we find a large increase in the relative importance of sectoral shocks when focusing on the more recent increase in the volatility of IP. Specifically, our analysis suggests that the intersectoral spillovers brought about by the disruptions of supply chain network in the wake of Great East Japan Earthquake and the declines of domestic production (or production capacity) in some sectors as a result of a deterioration in global competitiveness or the shift to overseas production have contributed to the recent fluctuations of Japan's IP.

JEL Classifications
E23; E32; C32

Keywords
Industrial Production; Structural Factor Analysis; Lehman Shock; Great East Japan Earthquake; Supply Chain Network; Input-output Matrix

The authors are grateful to Kosuke Aoki, Hibiki Ichiue, Michel Juillard, Koichiro Kamada, Mitsuru Katagiri, Marco Lombardi, Eiji Maeda, Makoto Nirei, Shinichi Nishiyama, Kenichi Sakura, Junnosuke Shino, Etsuro Shioji, Tomohiro Sugo, Kozo Ueda, and the participants at 5th ESRI-CEPREMAP Joint Workshop "Applicability of DSGE Model for Policy Analysis," 2013 Japanese Economic Association Annual Spring Meeting, and the seminar at the Bank of Japan for their advice and comments. The views expressed in this paper are those of the authors and do not necessarily reflect the official views of the Bank of Japan.

* Research and Statistics Department (currently, Financial Markets Department)
E-mail : [email protected]
** Research and Statistics Department
E-mail : [email protected]
*** Research and Statistics Department
E-mail : [email protected]
Notice

Papers in the Bank of Japan Working Paper Series are circulated in order to stimulate discussion and comments. Views expressed are those of authors and do not necessarily reflect those of the Bank.
If you have any comment or question on the working paper series, please contact each author.
When making a copy or reproduction of the content for commercial purposes, please contact the Public Relations Department ([email protected]) at the Bank in advance to request permission. When making a copy or reproduction, the source, Bank of Japan Working Paper Series, should explicitly be credited.

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
01:40pOil slips further below $80 a barrel as focus on OPEC intensifies
RE
01:40pOil slips further below $80 a barrel as focus on OPEC intensifies
RE
01:39pTSX futures flat as drop in oil prices weigh
RE
01:33pEBRD EUROPEAN BANK FOR RECONSTRUCTION AND DEVELO : Opening of Beskyd tunnel moves Ukraine closer to Europe
PU
01:33pNORDZUCKER GROUP'S FINANCIAL STATEMENTS 2017/2018 : rapid drop in the price of sugar overshadows earnings in the past financial year
PU
01:31pWizz Air profit flies as bigger planes keep costs down
RE
01:27pMARK ZUCKERBERG : EU parliament gets Facebook answers after Zuckerberg meeting
RE
01:26pFashion and sport brands clash in luxury sneakers race
RE
01:23pPARLIAMENT OF SOUTH AFRICA : Mineral Resources Committee Dismayed by Plan to Cut 2 000 Jobs
PU
01:23pEUROPEAN COMMISSION DIRECTORATE GENERAL FOR JUSTIC : Statement by Vice-President Ansip and Commissioner Jourová ahead of the entry into application of the General Data Protection Regulation
PU
Latest news "Economy & Forex"
Advertisement