Cover IMF Working Papers
Buy Book in Print
Japan’s Quest for Growth: Exploring the Role of Capital and innovation
Author:
Mr. Murtaza H Syed
Search for other papers by Mr. Murtaza H Syed in
Current site
Google Scholar Close
and
Ms. Jinsook Lee
Search for other papers by Ms. Jinsook Lee in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 294
Language:
English
Publication Date:
01 Dec 2010
DOI:
https://doi.org/10.5089/9781455211753.001
ISBN:
9781455211753
ISSN:
1018-5941
Pages:
21
Keywords:
WP; firm; SME; investment; panel data; Japan; Capital; Innovation; start-up company; tax loss; SME restructuring; nonviable company; companies from the Worldscope database; SME access; Currencies; Services sector; Manufacturing; Corporate income tax; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (452.1 KB) Download Epub
As labor input in Japan shrinks with population aging, capital accumulation and productivity gains will drive growth over the medium-term. At the same time, a changing global landscape calls for a shift in export-oriented investment toward new markets and a new generation of products, as well as increased investment by domestically-oriented firms. What policies could be adopted to help firms adjust to the imperatives of the post-crisis global economy and boost medium-term growth? Using disaggregated data, this paper investigates the determinants of investment and R&D spending by Japanese firms. The results suggest that policies could usefully focus on four areas. First, raising the return on investment, including through reforms to the tax code. Second, decreasing uncertainty through improved risk management by firms and by bolstering the business climate. Third, improving SME access to finance, notably by encouraging venture capital investment in innovative areas and more risk-based lending. And fourth, reducing excess leverage and supporting corporate restructuring to enable new investments to flourish.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund