Empirical evidence of externalities of IT capital in Japan

Yasuo Nakanishi ()
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Yasuo Nakanishi: Senshu University, Department of Economics

Economics Bulletin, 2005, vol. 15, issue 18, 1-11

Abstract: We tested for the presence of IT capital externalities, based on a translog cost function framework applied to 10 Japanese manufacturing industries for the years 1974 to 1993. This framework allows us to test whether investment in IT capital in other industries reduces costs in a given industry. Our findings strongly suggest that externalities are prevalent in these manufacturing industries.

Keywords: Externality (search for similar items in EconPapers)
JEL-codes: O3 R3 (search for similar items in EconPapers)
Date: 2005-07-21
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