The impacts of the Japanese finance and insurance industry in the national economy: 1985-2005

Abstract

The purpose of this study is to analyze the impacts of the finance and insurance industry in the Japanese national economy. This study employs Input-Output (IO) analysis as an analysis tool. More specifically, this study uses the components 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 apparatuses. The analysis period of this study is 1985-2005. The results show that, by using both multipliers, the analyzed industry did not include in the top five Japanese industrial sectors from 1985 to 2005. Based on this fact, one can argue that the investigated industry did not make the attractive impacts to the economy of Japan on the analysis period through an additional final demand. By using both indices, one can argue that the evaluated industry received high impacts from the changes of external aspects on the analysis period