2023 Fiscal Year Research-status Report
Determinants of physical and R&D investments of Japanese manufacturing firms
| Project/Area Number |
23K01457
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| Research Institution | Waseda University |
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Principal Investigator |
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| Project Period (FY) |
2023-04-01 – 2026-03-31
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| Keywords | physical investment / monetary shock / transmission mecahnism / interest rate / differential |
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| Outline of Annual Research Achievements |
The transmission mechanism of Japanese monetary shock: what is the trigger: The reserach analyzed the transmission mechanism of monetary shocks in Japan using the factor-agumented VAR. The period of data overed is 2004Q1~2022Q4 and more than 200 macro level variables are included in the empirical analysis. The empirical results shows that the Japan-US interest differential was the trigger of the movements of Japanese macroeconomic variables such as physical investment, industrial production index, and employment. A bigger gap of the differential depreciated the yen after several month, and increases corporate profitability. It results in more investment and lower unemployment rate.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
The draft of the first paper will be soon comleted, and it will be presented at the Korean Economic Review International Confernece, on JUne 18-19, 2024.
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| Strategy for Future Research Activity |
The first paper will be revised after it is presented in the Korea Economic Review Conference and will be submitted to a journal. The empirical analysis of the second paper which will analyze the determinants of physical investment of Japanese corporates with firm level micro data will start as soon as the first paper is submitted.
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| Causes of Carryover |
I planed to present a paper in the academic year of 2023, but did not have a chance. I will present the paper in 2024.
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