Japan's demographic transition and the productivity challenge

This chapter provides an overview of regional trends and challenges facing Japan. It begins with a look at the demographic and macroeconomic context, reflecting in particular on the implications of population ageing and decline for economic policy, especially efforts to enhance productivity. It then turns to an analysis of regional growth performance, inter-regional disparities and other socio-economic outcomes. This is followed by consideration of the economic policy response to demographic change at different territorial scales, from the national to the local, and an examination of the spatial consequences of Japan’s restructuring challenge. The primary focus of the discussion is on the interactions among demographic change, productivity performance and the evolution of the country’s settlement pattern.