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Yasuo Nakanishi
''Empirical evidence of externalities of IT capital in Japan''
( 2005, Vol. 15 No.18 )
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
JEL: O3 - Technological Change; Research and Development: General
R3 - Production Analysis and Firm Location: General
Manuscript Received : Jul 21 2005 Manuscript Accepted : Jul 21 2005

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