“Osaka is a symbol of Japan’s stagnation”. This paper analyzes the stagnant Osaka economic growth structure from a viewpoint of computerization.
In this paper, we first estimate investment and stock accumulation in ICT capital. Accumulation of ICT capital stock progressed, while capital stock accumulation in Osaka was sluggish.
Next, this paper analyzes the economic effects of computerization from a viewpoints of labor productivity, marginal productivity, stock accumulation and investment factors. The marginal productivity of ICT capital was high, contributing to the growth of labor productivity in Osaka. However, the ICT capital stock accumulation in Osaka was lower than the optimum level. This paper clarifies that ICT capital investment in Osaka would have substitutive effects for labor.