Causes of the Long Stagnation of Japan During the 1990s: Financial or Real? / Taizo Motonishi, Hirshi Yoshikawa.

Format:

Book

Author/Creator:

Motonishi, Taizo.

Contributor:

National Bureau of Economic Research.

Yoshikawa, Hirshi.

Series:

Working Paper Series (National Bureau of Economic Research) no. w7351.

NBER working paper series no. w7351

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Causes of the Long Stagnation of Japan During the 1990s

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1999.

Summary:

Corporate investment is the most important factor to explain the long stagnation of Japan during the 1990's. Using the Bank of Japan diffusion indices of real profitability' and banks' willingness to lend', we estimate investment functions for four groups of firms: large/small and manufacturing/non-manufacturing. Our results suggest that for large firms, financing constraints are not significant whereas the converse is true for small firms. A fall of investment during 1992-94 is largely explained by real factors. However, the credit crunch occurred beginning 1997 and it lowered the growth rate of GDP by 1.6%.

Notes:

Print version record

September 1999.