Policy Research Domains (Major Policy Research Domains) II. Promoting Innovation and Strengthening International Competitiveness

Research on Productivity Growth in Service Sector

Project Leader/Sub-Leader

KWON Hyeog Ug Faculty Fellow


MATSUURA Toshiyuki

MATSUURA Toshiyuki Fellow

Sub-Leader (until March 31, 2008)


2009 - 2010

The purpose of this project is to grasp productivity trends in the service sectors and then to inform the government on the best way to boost productivity in these sectors, which have seen poor productivity relative to the U.S. and EU.
Specifically, we construct a productivity database at firm level using microdata from government statistics and identify features and problems in Japan's service sectors compared with the manufacturing and construction sectors. In addition, we undertake concrete empirical analysis regarding the effect of ICT, human capital, new entrants and deregulation policies on productivity in the service sectors and provide specific policy implications based on our empirical findings.


The objectives of this research project are as follows:

  • (1) To develop methods for accurate measurement of productivity in service industries and to undertake concrete empirical analysis on the determinants of productivity in service industries (human capital, innovation, introduction of IT, intangible assets, outsourcing, location, new entrants, deregulation policies, etc.) by using industry and firm level data,
  • (2) To identify problems in Japan's service industries through an international comparison using rigorous methods, and
  • (3) To develop specific policy recommendations based on the results that are ultimately obtained from these analyses.

In our research, we will collaborate with the following research projects at RIETI: II-3) Productivity of Companies and Industries, and Japan's Economic Growth (FUKAO Kyoji, FF & MIYAGAWA Tsutomu, FF); II-4) Japan's Productivity and Economic Growth: International Comparison and Analysis of Determinants of Productivity Growth (FUKAO Kyoji, FF); II-11) Study on Intangible Assets in Japan (MIYAGAWA Tsutomu, FF); and I-3) Empirical Analyses Relating to IT and Productivity (MOTOHASHI Kazuyuki, FF & MATSUURA Toshiyuki, F). We will also be collaborating with overseas research institutes (OECD, IFS, KDI, Brookings Institute) and overseas research projects (EUKLEMS).

May 26, 2008 - March 31, 2011

Major Research Results


RIETI Discussion Papers


RIETI Discussion Papers


RIETI Discussion Papers


RIETI Discussion Papers

RIETI Policy Discussion Papers


RIETI Discussion Papers