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Can the sun rise again in the ubiquitous information age? : Feasibility of a vigorous economic growth for Japan under the diminishing demographic trend

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Abstract The purpose of this paper is to examine the feasibility of a vigorous economic growth for Japan, which is dealing with aging and diminishing demographics. We first analyze the potential growth rate of... productivity that compensates this diminishing demographic trend, and then we examine the effect of investment in information technology on productivity resurgence. Besides, we investigate reasons and causes that prevented Japan from reaping the benefit of new technologies in the 1990s, reviewing corporate systems and government policies. These analyses reveal that it is feasible for Japan to achieve three percent economic growth if appropriate corporate reforms and policies are enacted. It seems that Japan is ready to grow, making the 1990s not only the "lost decade" but also the "born-again decade" to lead the merits of innovation in information technology.show more

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Created Date 2009.09.09
Modified Date 2022.02.10

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