Open Access Article SciPap-748
Quaternary Sector and Economic Development in Japan: A Causal Analysis
by Jagannath Mallick 1,*

1 Faculty of Economics and Administration, Institute of Regional and Security Sciences, University of Pardubice, Studenská 84, Pardubice 53210, Czechia

* Authors to whom correspondence should be addressed.

Abstract: There is no study on the linkage between the quaternary sector and economic development. The present study contributes to the existing literature by analysing the patterns of development of quaternary sector and its implication to the economic development and growth in Japan over the periods 1970-2008. The study uses disaggregated data from Japanese Industrial Productivity database, and multivariate VAR method for the empirical analysis. The findings show a significant role of quaternary activities in the development of Japan economy. The evolution of development of quaternary sector is mainly due to the development of activities of security and care. Also there is bidirectional causality between the quaternary sector and the economic development in Japan. Quaternary sector is very crucial for the economic development and growth. Hence, the practicable measures should be taken to accelerate the development of quaternary sector.

Keywords: Economic Development, Quaternary Services, Causal Effect, Multivariate Var

JEL classification:   C32 - Time-Series Models • Dynamic Quantile Regressions • Dynamic Treatment Effect Models • Diffusion Processes • State Space Models,   F63 - Economic Development,   O11 - Macroeconomic Analyses of Economic Development

SciPap 2015, 23(1), 748

Received: 14 July 2014 / Accepted: 8 April 2015 / Published: 27 April 2015