Korea-Japan Workshop on the Industrial Productivity Database

Discussion of Future Joint Work on theComparison of International Productivity:Research Plan on JapanFebruary 29, 2004

Kyoji FUKAO
Hyeog Ug KWONKeisuke ORII

1. ESRI-HISTAT JIP Database•

HI-STAT project team and ESRI will
collaborate on
1. the extension of the period coveredfrom 1970-98 to 1970-2001 or 1970-2002;
2. the revision from 1968 SNA base to
1993 SNA base;and3. revisions of labor input data and otherdata.

2. RIETI Manufacturing Database 1••

The HI-STAT project team and RIETI(Research Institute of Economy, Trade andIndustry) will collaborate on the compilationof the RIETI Manufacturing Database, which
will contain annual industry-level data on
output, employment, payroll and other input
costs, investment, capital stocks, TFP, andvarious industry-specific price indexes.
The database will cover all 4-digit
manufacturing industries from 1960 to 2001,
in two versions: a database, which covers allestablishments, and a database, which does
not cover very small establishments.

Comparison between the NBER-CES Manufacturing Database and theRIETI Manufacturing Database
NBER-CES Manufacturing Database
1958-1996
Establishment-base1972 SIC industries (448 industries)
1987 SIC industries (459 industries)

RIETI Manufacturing Database
1960-2000
Both
1963 JSIC activities
1967 JSIC activities
1972 JSIC activities
1976 JSIC activities
1984 JSIC activities
1993 JSIC activities

Coverage

In census years, all establishments arecovered. In other years, the activity of
all establishments is estimated from asample survey.

Annual survey covers establishmentswith 4 or more employees
But, surveys in years ending with 0, 3,
5 and 8 cover all establishments

Headquarters and support facilities

Not included

Included before 1987

Shipments, value added

Production and net-value added data
are available in the case of
establishments with 10 or moreworkers. In the case of smaller
establishments, only data on shipments
and gross value added are available,
since data on inventories anddepreciation are not available.

PeriodActivity-base or establishment-baseIndustry classifications

Output data

Comparison between the NBER-CES Manufacturing Database and theRIETI Manufacturing Database (continued)

Intermediate input data

Non-energy, energy

Data on intermediate input ofraw materials, fuels, electricity,
subcontracting are available forestablishments with 30 or more
employees.
Disaggregated data on
intermediate inputs are notavailable for smaller
establishments.

Capital stock

Capital stock at the 4-digit
industry using FRB 3-digit
capital stock data is used.
Net capital stock(excluding land)
Computer

we use JIP database as the basisof 4-digit estimates
We cannot separate computer

Capacity utilization

Not available

We can use the JIP database.

Labor quality

Not available

Not available. But we can use
data of population survey (3-digitindustries)

Work hours

Available
Before1972:BLS producer priceindex

Output deflator

Material deflator
Investment goods deflator

From 1972: 5-digit productdeflators of BEA
Input-Output Table
Energy deflator
Investment flow matrix

We need to use other statistics.
Either the Bank of Japan WPI orCommodity flow deflators can beused.
I-O tables can be used.
Fixed capital flow matrix andcommodity deflators

Example of commodity code of JSIC

Code1
2
3
4
5
6
7
8
9
10
11

1960-61
181111

1961-63
181111

1963-67
181111

1967-71
181111

1971-78
181111

1978-80181111

1984-88
121111

1988-92
121111

1992-94
121111

1994-99
121111

2000-01
121111

181111

181111

181111

181111

181111

181111121111121111121111121111121111

181111

181111

181111

181111

181111

181111121111121111121111121111121111

181112

181112

181112

181112

181112

181112121112121112121112121112121112

181112

181112

181112

181112

181112

181112121112121112121112121112121112

181112

181112

181112

181112

181112

181112121112121112121112121112121112

181113

181113

181113

181113

181113

181113121113121113121113121113121113

181113

181113

181113

181113

181113

181113121113121113121113121113121113

181113

181113

181113

181113

181113

181113121113121113121113121113121113181211

181211

181211

181211

181211

181211121211121211121211121211121211

181211

181211

181211

181211

181211

181211121211121211121211121211121211

Outline of the principal source of US manufacturing database¾ Census of Manufactures:
Conducted every five years ending in 2 and 7¾ ASM (Annual Surveys of Manufactures)
Conducted every years except ones ending in 2 and 7¾ Cut-off point for size of establishments surveyed: none
Census surveys ca.350,000 establishments, while ASM surveys
ca.55,000 establishments as sample.
¾ Industrial classification
Present series since Census 1997: in accordance with NAICS(North American Industry Classification system)
Former classifications: 1987 SIC, 1972 SIC ‥3. Our Long-Run Goal
1. Construct a database for total factor productivity analysis, which is•open to the public;•
at a detailed industry level (about 60 to 90 industries);•harmonized among countries so that we can use it forinternational comparison;•and covers the macro-economy so that we can derive
macroeconomic implications.
2. Conduct economic analyses and international comparisons. For
this goal we need to•measure PPP;
•evaluate the equivalence of each labor category;•innovate new approaches, which are based on our industrial
database;•and compare results of industry level analyses with results
based on micro data.