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01/02/2002

Economic Impact and Policy Implications of the Long-term Decline in Japan's Business Startup Rate

Keisho Komoto 

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1. Introduction

The rate of new business startups in Japan has continued to decline over the long term， from approximately 7% in 1970 to a recent low of 4%. Both the trend and level are conspicuous when compared to the U.S.， where the rate has consistently remained high at around 14% during the same period (Figures1 and 2).

This paper examines two questions: What effect does the declining rate have on the economy? And， if the effect is negative， how can the rate be improved?

 

Keisho Komoto

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