Appended Note 3-6 Calculation Method for Degree of Contribution to the Value Added Growth Rate for Technological Knowledge Stock
- Japanese version
- English version
The following production function is assumed:
Both sides of the equation (1) are divided by L 
K1 - and we find the Total Factor Productivity (T). Then, taking the logarithm and the time derivative for equation (2) gives us the equation (4).
With respect to the equation (4), we estimated 
and 
by taking the growth rate of Total Factor Productivity, which was obtained by substituting by the labor share(remuneration for employee/national factor income) to , as a non-explanatory variable and the growth rate of technological knowledge stock as an explanatory variable. Then, we implemented the factor decomposition. Data source used for the estimation and the estimation results are as follows:
Details on Data
Y: Gross Domestic Production by economic activity (in all industries). The 93 SNA-based figures were used for the 1990-00 period. For years before the period, we used the 68SNA-based figures which were modified with a link-coefficient.
L: Amount of Labor Input (SNA-based number of workers × Hours worked). However, for years before 1989, since there was no the SNA-based hours worked, the labor input was calculated by using the gross real working hours index from "Monthly Labor Survey" , Ministry of Health, labor and Welfare and then we used the values modified with link.
K: Capital input. Total of capital stock of private manufacturing industries multiplied by the operating rate of manufacturing industries and capital stock of private non-manufacturing industries multiplied by the operating rate of non-manufacturing industries. We calculated the operating rate of private non-manufacturing industries by removing trends from the "Tertiary Industry Activity Index/capital stock of non-manufacturing industries".
R: Technical Knowledge Stock (See Appended Note 3-5)
