The Structural Causes of Japan's "Two Lost Decades"

Kim YoungGak, Fukao Kyoji, Makino Tatsuji

doi:10.15057/21438

Bibliographic Information

Other Title

「失われた20年」の構造的原因
ウシナワレタ 20ネンノコウゾウテキゲンイン

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Description

Although by the early 2000s, Japan had largely overcome its non-performing loan problems, economic growth hardly accelerated, resulting in what now are “two lost decades.” This paper examines the underlying reasons from a long-term and structural perspective. Major issues examined include the chronic lack of domestic demand since the mid-1970s, caused by a long-run decline in capital formation through a slowdown in the growth of the working age population and resulting in a current account surplus and yen appreciation, and supply-side issues such as stagnant TFP growth caused by Japan's low economic metabolism. A key finding is that whereas large firms since the mid-1990s have achieved greater increases in TFP than in the 1980s through R&D and internationalization, the TFP of small firms has stagnated.

Journal

経済研究

経済研究 61 (3), 237-260, 2010-07-25

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