Analysis of Japanese Industry Using Production Function

Abstract

When labor and capital, which are factors of production, are input, products are obtained. A production function illustrates the relationship between production activities and associated products. In this study, several Japanese industries that were indicated as economic activities in the 2021 National Accounts were analyzed using Cobb-Douglas and possibilistic production functions. In this study, a Cobb-Douglas and possibilistic production functions analyzed Japanese industries indicated as economic activities in the 2021 National Accounts. The results show that the output of information and communication equipment is increasing while that of information and communication industry is decreasing. The demand for professional, scientific, and technical services and business support services has increased significantly.