Does Energy Constraint Facilitate the Japanese Technical Change?

Yu Hong; Jia Lin Guan; Hong Wei Su

doi:10.4028/www.scientific.net/AMR.664.1166

Paper Titles

Study on Evaluation Method of Regional Financial Ecoenvironment
p.1146

Social Capital and Organizational Performance: Exploring the Role of External Environment
p.1151

Evaluation Theory and Application of Logistics Enterprise Customer Satisfaction Degree
p.1155

The Research on the Coordinate Development of the Renewable Resource Industry Chain Systems Based on Multi-Level Hierarchical Structure
p.1161

Does Energy Constraint Facilitate the Japanese Technical Change?
p.1166

Performance Evaluation of Energy Saving and Emission Reduction
p.1171

Study on the Measures of Production Safety Accident Prevention and Control
p.1176

A Study on Three-Dimensional Modeling Method in Product Design Process Based on Pro/E
p.1180

The New Methodology of Working Load Classification in Engineering Operations
p.1186

HomeAdvanced Materials ResearchAdvanced Materials Research Vol. 664Does Energy Constraint Facilitate the Japanese...

Does Energy Constraint Facilitate the Japanese Technical Change?

Abstract:

This study challenges the traditional wisdom that soaring energy prices exert negative effects upon economic growth. For an industrialized country with very tight energy supply constraints, increasing energy costs may drive the firms to seek for technical change and innovation to compete internationally. Using the Japanese monthly data ranging from 1975 to 2010, this study tests for the assumption of endogenous cost-driven technical change. We identify a long-run equilibrium co-integrating relationship among the Japanese industrial production, energy prices, export volumes and export prices. Although energy prices are negatively associated with Japanese industrial production in static equilibrium, the results of Granger causality tests show that an increase in domestic energy costs has significantly positive effects on Japan’s industrial production as well as on export volumes and prices, in both short-run and long-run. We document that the seemingly paradox strongly suggests an endogenous technological change driven by energy costs in Japan.

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Periodical:

Advanced Materials Research (Volume 664)

Pages:

1166-1170

DOI:

https://doi.org/10.4028/www.scientific.net/AMR.664.1166

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Online since:

February 2013

Authors:

Yu Hong, Jia Lin Guan, Hong Wei Su

Keywords:

Co-Integration, Energy Constraint, Granger Causality, Oil Price, Technical Change

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