Do The Energy Industries Have Important Roles In The Japanese Economy?

Abstract

The purpose of this study is to analyze the roles of energy sectors in the Japanese national economy. This study employs Input-Output (IO) analysis as an analysis tool. More specifically, this study uses the parts of IO analysis, namely simple output multiplier, simple household income multiplier, index of the power of dispersion, and index of the sensitivity of dispersion as analysis devices. The analysis period of this study is 1985-2005. The results show that, by using both multipliers, the analyzed energy industries did not include in the top five Japanese industrial sectors from 1985 through 2005. On the other hand, by using both indices, one of the analyzed sectors, petroleum refinery products, occupied quadrant I on the analysis period. This fact explains that the sector had a strong influence on the economic activities of Japan, and received great impacts from the external aspects on the analysis period. Generally, the industries occupied quadrants I, II, and IV from 1985 through 2005.