The Hollowing-Out of Japan’s Economy: Myths, Facts and Countermeasures
The skyrocketing cost of importing energy combined with an uncertain electricity supply, a maze of regulations, a contracting domestic market, and the appreciation of the yen have led the Japanese economy to be in peril of deindustrialization. The hollowing-out of the Japanese industrial base as companies seek new business opportunities through overseas manufacturing has become an issue of pressing concern in the Japanese national debate.
On February 20, the Center for Northeast Asian Policy Studies at Brookings hosted a discussion to address the future of the Japanese economy, whether it will become a high-end manufacturing economy or a post-industrial economy based around services and repatriated income from overseas investment. Presentations examined the extent to which fears of deindustrialization are warranted, the extent of internationalization of Japanese manufacturing activities, and assess possible countermeasures in the areas of deregulation, promotion of inward investment, and the encouragement of innovation.
Introduction and Moderator
Director - Center for East Asia Policy Studies
Senior Fellow - Foreign Policy, Center for East Asia Policy Studies
Philip Knight Chair in Japan Studies
Panel 2: Countermeasures and the Future of the Japanese Economy
Senior Research Fellow - Japan Center for Economic Research
Visiting Professor - International Christian University
Professor, School of Global Policy and Strategy - University of California, San Diego
Professor, Graduate School of Asia-Pacific Studies - Waseda University
Discussant: Hironori Kawauchi
Senior Economist, East Asia and Pacific Region - The World Bank
Panel 1: The Hollowing-Out Debate: Domestic Constraints, Overseas Relocation
Barry P. Bosworth
Nonresident Senior Fellow - Economic Studies
Chief Engineer - Honda North America Engineering Center
Professor, College of Economics - Nihon University
Senior Vice President & General Manager - Mitsubishi International Corp., Washington D.C. Office
Discussant: James Fatheree
Senior Director for Japan and Korea, U.S. Chamber of Commerce - President, U.S.-Japan Business Council
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