Bayoumi, Tamim and Charles Collyns, 1999, Post-Bubble Blues: How Japan Responded to Asset Price Collapse, International Monetary Fund.
Boltho, Andrew and Jenny Corbett, 2000, “The Assessment: Japan’s Stagnation—Can Policy Revive the Economy” Oxford Review of Economic Policy, Vol. 16, No. 2, pp. 1–17.
Boylaud, Olivier, 2000, “Regulatory Reform in Road Freight and Retail Distribution,” OECD Economics Department Working paper No. 255, August.
Boylaud, Olivier, and Giuseppe Nicoletti, 2000, “Regulation, Market Structure and Performance in Telecommunications,” Economics Department Working Papers No. 237, OECD, April.
Development Bank of Japan, 2000, “Information Technology and the Economy,” Development Bank of Japan Research Report No. 9, September, pp. 33–61.
Dutz, Mark, and Aydin Hayri, 2000, “Does More Intense Competition Lead to Higher Growth?” World Bank Policy Research Working Paper No. 2320.
Economic Planning Agency, 1994, Rakuichi Rakuza Kenkyuukai Chukan Houkoku (Interim Report of Committee for a Free Market) (in Japanese).
Edwards, Jane, and Jochen Schanz, 2001, “Faster, Higher, Stronger—An International Comparison of Structural Policies,” Lehman Brothers, Structural Economics Research Papers No. 3, March.
Genda, Yuji, and Marcus E. Rebick, 2000, “Japanese Labour in the 1990s: Stability and Stagnation,” Oxford Review of Economic Policy, Vol. 16, No. 2, pp. 85–102, summer.
Goldman Sachs, 2000, “The IT Revolution—New Data on the Global Impact,” Global Economic Commentary, Goldman Sachs, Global Economics Weekly 18th October 2000.
Hayashi, Fumio, and Edward Prescott, 2001, “The 1990s in Japan: A Lost Decade,” Interim Report for the Collaboration Projects in Spring 2001, Economic and Social Research Institute, Cabinet Office, Government of Japan.
Imai, Yutaka, and Masaaki Kawagoe, 2000, “Business Start-ups in Japan: Problems and Policies,” Oxford Review of Economic Policy, Vol. 16, No. 2, pp. 114–123, summer.
Kato, Takao, 2001b, “Financial Participation and Pay for Performance,” in: J. Haywood, M. Brown, (eds), Paying for Performance: An International Comparison, forthcoming.
Ministry of Economy, Trade and Industry, 2001, Tsusho Hakusho (White Paper on International Trade), pp. 39–63, May (in Japanese; English version forthcoming)
Ministry of International, Trade and Industry, and Sanwa Research Institute, 2000, “Keizai Kouzou Kaikaku no Kouka Shisan ni Tsuite (On Estimation of the Impact of Economic Structural Reform,” November (in Japanese).
Ministry of Post and Telecommunication, 2000, “Denki Tsushin Sabisu ni kakaru Naigai Kakakusa Chousa no Gaiyou (Gist of the Survey on Price Differentials in Telecommunications),” August (in Japanese).
Nicoletti, Giuseppe, Stefano Scarpetta, and Olivier Boylaud, 2000, “Summary Indicators of Product Market Regulation with an Extension to Employment Protection Legislation,” Economics Department Working Papers No. 226, OECD, April.
Oliner, Stephen D., and Daniel E. Sichel, “The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?”, The Journal of Economic Perspectives, Vol. 14, No. 4, pp. 3–22, Fall.
Organization for Economic Cooperation and Development, 1999b, “The OECD Review of Regulatory Reform in Japan,” SG/RR(99)3, February.
Organization for Economic Cooperation and Development, 2000a, OECD Information Technology Outlook 2000—ICTs, E-Commerce and the Information Economy.
Porter, Michael, 1998, “Measuring the Microeconomic Foundations of Economic Development,” The Global Competitiveness Report 1998, World Economic Forum.
Scarpetta, Stefano, Andrea Bassanini, Dirk Pilat, and Paul Schreyer, 2000, “Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level,” OECD Economics Department Working Paper No. 248.
Shimpo, Seiji, and Fumihara Nishizaki, 1997, “Measuring the Effects of Regulatory Reform in Japan: A Review,” Economic Research Institute, Economic Planning Agency, Discussion Paper No. 74, March.
Shinozaki, Akihiko, 2000a, “An Empirical Analysis of Information-related Investment in Japan and Its Impact on the Japanese Economy,” The Information Technology Revolution, American Economic Association, 2000 Boston Annual Meeting, January.
Shinozaki, Akihiko, 2000b, “Japan’s Economy in the 1990s and Now—From the Viewpoint of Information Technology Investment,” July.
Shinozaki, Akihiko, 2001a, “IT Kakumei ga Terashidasu Kouzou Mondai no Shinso (The Depth of Structural Reform Highlighted by IT),” Economics & Policy No. 4, Toyo Keizai Shinpo-sha, Spring (in Japanese).
Shinozaki, Akihiko, 2001b, “IT ga Semaru Nihon-gata Shisutemu no Kaikaku (Reform of the Japanese System Urged by IT),” Keizai Seminar, No. 554, Nihon Hyoron-sha, February (in Japanese).
Prepared by Tim Callen (ext. 38873) and Takashi Nagaoka (ext. 37613).
See Council on Economic and Fiscal Policy, “Structural Reform of the Japanese Economy: Basic Policies for Macroeconomic Management.” The report was endorsed by the Cabinet on June 26.
The structural unemployment rate is estimated to have risen from around 2 percent in the early 1990s to 3¾-4 percent in 2000 (Ministry of Health, Labour, and Welfare).
The term “lifetime employment,” which describes the “implicit long-term employment contract for the regular workforce” (Kato, 2001a), may be misleading as most workers leave firms before reaching legal retirement age (Genda and Rebick, 2000).
Genda and Rebick (2000) argue that change has been gradual and that the traditional employment system will endure, while, Kato (2001b) endorses the notion that an increasing number of firms are introducing performance-based wage system to replace parts of the seniority-based system.
The rate of business failure is also lower in Japan than in the U.S., although it has picked-up in recent years reflecting the change in the economic environment and the introduction of the Civil Rehabilitation Law in April 2000 which provided a court led debtor-in-possession corporate reorganization process similar to the U.S. Chapter 11 procedure. However, while in the U.S. the rate of new business formation has always exceeded the rate of business failures, in Japan the opposite has been the case in the 1990s.
The exemptions include: the relaxation of restrictions on the distribution of stock options (the ceiling was raised from 10 percent to 33 1/3 percent of outstanding shares) and the potential recipients expanded to include outsiders such as consultants and programmers in addition to company executives and employees; and greater flexibility for issuing non-voting equity (the ceiling for such issues was raised from 1/3 to 1/2 of outstanding shares) and the grace period during which the absence of a dividend payment does not result in the conversion of the shares to common stock was extended from 1 year to 3 years.
The maximum foreign ownership of NTT stocks was also increased from 20 percent to 33 percent. An advisory board to the former Ministry of Post and Telecommunications recommended in late 2000 that consideration be given to reducing the NTT holding company’s stake in the NTT group of companies (100 percent of NTT Communications, 64 percent of NTT DoCoMo, and 54 percent of NTT Data, as of end March 2001) if greater competition was not seen after two years following the enforcement of the law. While this provision was not included in the legislation, the Minister in charge has requested that NTT reduce its ownership of these companies, improve its efficiency, and open up its networks to competitors who do not have their own lines.
Calculations by the Research and Statistics Department of METI.