1990 Fiscal Year Final Research Report Summary
The Reoientation of Japanese Economy from Expoet-Driven to Domestic Demand-Oriented Grouth and its Effect on Regional Economic Development
| Project/Area Number |
63460001
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| Research Category |
Grant-in-Aid for General Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Research Field |
経済事情及び政策学
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| Research Institution | Fukushima University |
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Principal Investigator |
YASUTOMI Kunio Fukushima University, the Department of Economics, Professor, 経済学部, 教授 (60007424)
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| Co-Investigator(Kenkyū-buntansha) |
SIMIZU Shuji Fukushima University, the Department of Economics, Assistant Professor, 経済学部, 助教授 (30134159)
YAMAKAWA Mitsuo Fukushima University, the Department of Economics, Professor, 経済学部, 教授 (00094285)
IIJIMA Mitsuo Fukushima University, the Department of Economics, Professor, 経済学部, 教授 (70106946)
KITAMURA Hiromoto Fukushima University, the Department of Economics, Professor, 経済学部, 教授 (90091850)
MACHIDA Toshihiko Fukushima University, the Deparment of Economics, Professor, 経済学部, 教授 (70007417)
MORITOMO Yuichi Fukushima University, the Department of Economics, Assistamnt Professor (20166424)
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| Project Period (FY) |
1988 – 1989
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| Keywords | domestic demand-oriented growth / the Mayekawa Report / quality of life / yen appreciation / land price / hours worked / public investment used for public amenities / the Structural Impediments Initiative |
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| Research Abstract |
Major objective of Japanese economic policy has been the reorientation of the economy from export-driven to domestic demand-oriented growth in the second half of 1980s and the early 1990s. The Mayekawa Report published in April 1986 proposed a general reorientation of the economy through the improvement of the quality of life.
The rapid appreciation of yen since mid-1985 has contributed to the reorientation of the ecnomy from export-driven to domestic demand-oriented growth. Net export (current account balance) has reduced dramatically. Since 1986 domestic demand expanded rapidly than GNP in real term.
Public investment was increased significantly in 1987-88. Easy monetary policy stimulated residential investment in 1986-87, followed by buoyant business investemnt. Easy monetary policy stimulated private investment both through direct effects of lowering the cost of borrowing and indirectly throughasset appreciation. The origin of strength of private consumption growth shifted from highe
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r income wage earnre's and self-employed households, which had led the recovery in 1987, probably reflecting wealth effects, to middle and lower income households with rising wages and rapid employment growth
But the gap between Japan's economic strength and its standard of living has not curtailed. Rapid increase in land price sine the end of 1985 has deteriorated the quality of life. The wealth disparity between firms and persons, those who already own urban real estate and those who do not has risen dramatically. In the metropolitan area there is a remote possibility that a employee purchases a housing.
While average hours worked declined in other major countries, they increased in 1975-1988 in Japan. This increase was due to a rise in average overtime worked. Firms has minimized regular employment and depended more on overtime work and part-time workers. Annual hours worked in Japan is much longer than in other major countries. In 1988 the Government set a target for reducing average annual hours worked currently 2 100 to 1 800 by the end of FY 1992. In 1990 average annual hours worked decreaced slightly. It seems difficult to realize the target.
With many public investment used for industrial facilities, spending for public amenities, such as sewage plants and parks has been insufficient. The Final Report of the Structural Impediments Initiative published in June 1990 set a target for increasing the share of public investment used for public amenities currently 50-54 per cent to 60 pet cent bis 2000. It seems difficult to realize the target. The impediment to realize the target is the opposition of the ministries and pressure groups to the change of share of public investmet. Less
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