OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
 

Japan's New Growth Strategy to Create Demand and Jobs You or your institution have access to this content

Authors:
Randall S. Jones, Byungseo Yoo1
Author Affiliations
  • 1: OECD, France

Publication Date
06 Sep 2011
Bibliographic information
No.:
890
Pages
35
DOI
10.1787/5kg58z5z007b-en

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The New Growth Strategy aims to create demand and jobs through regulatory reform and fiscal measures. The Strategy focuses on key challenges, notably climate change and population ageing, which can be turned into sources of growth. Given Japan’s precarious fiscal position, it is essential to co-ordinate spending related to the Strategy with the medium-term fiscal plan, in part by increasing the emphasis on regulatory reform. Such measures should cover the entire economy, rather than being limited to the seven areas identified in the Strategy. Among those areas, effectively promoting green innovation will require market-based instruments to place a price on carbon, preferably through a mandatory and comprehensive emissions trading system, to promote private investment, accompanied by a range of other policies. Achieving deeper economic integration with Asia depends on reducing support for agriculture to facilitate more bilateral and regional trade agreements, while bringing down barriers to foreign direct investment and foreign workers. Policies to expand venture capital would help launch innovative firms. This Working Paper relates to the 2011 OECD Economic Survey of Japan (www.oecd.org/eco/surveys/Japan).
Keywords:
New Growth Strategy, free trade agreements, Asian economic integration, economic partnership agreements, regional development, green growth, health care reforms, Japan, foreign direct investment, financial sector, climate change, regulatory reforms, immigration, Japanese economy
JEL Classification:
  • F13: International Economics / Trade / Trade Policy; International Trade Organizations
  • I18: Health, Education, and Welfare / Health / Government Policy; Regulation; Public Health
  • Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters; Global Warming