Study On The Causes Of Long-term Economic Recession In Japan

After the World War II, Japanese created a rapid economic development view, andfinally became the second largest economy after America in1968. However, after enteringthe1900s, Japan experienced tremendous economic bubble and was always in thedispirited potential, so as to continue to decline. During that time, the measures issued bythe government and aimed at reviving the economy could hardly achieve the desiredresults, the whole1990s became Japan’s "lost10years". Therefore the research of Japaneseeconomy recession and learning from the experience and lessons is of great importance tothose countries which referring to the experience of Japan, including China. This kind ofstudy can ring alarm for these countries and avoid facing the same difficulties in the future.On the basis of previous research results, the author analyzes the reasons for thedepression of Japanese economy since1990s from two aspects. After addressing theeconomic growth theory of Schumpeter, we first talk about the link between Japaneseeconomy growth and the postal Japanese industrial policies, what’s more the link betweenJapanese economy growth and technology introduction pattern. Second, elaborate howthose industrial policies and the introduction of technology would limit the furtherdevelopment of Japanese after it became a higher income country. In the analysis of thepost-war industrial policies, the theoretical basis of this paper is explained by illustratingSchumpeter’s innovation theory and the relationship between innovation and economicdevelopment. Then a detailed analysis of the development process of Japan’s post-wareconomic was given, together with industrial polices and technology introduction policyadopted by Japan government to recover its economy. However, with the continuousimprovement of the degree of economy, the original policy system did not adapt to theneed of economic development, because there was no breakthrough in the basic research,Japan found itself restricted. It just could not go on booming like America.Because of the inability of original innovation, Japan had a poor performance ineconomy, and the causes of the inability of original innovation can be divided into three aspects: first, the enterprise management mode accommodated to the industrial polices isnot good for the implementation of original innovation; second, the whole Japanese society,whether universities or corporations, did not lay enough investment in basic research; third,the shortage of higher education investment resulted in high-level human capitalaccumulation deficit in JapanFinally, on the basis of the experience and lessons of Japan, for the future Chineseindustrial upgrading and technological innovation some constructive suggestions are putforward. First, the transformation of industrial structure should meet the productivity levelof hierarchy; second, handle the relationship between government intervention and marketregulation correctly; third, strengthen independent innovation; fourth, pay attention to theaccumulation of human capital, the final purpose is to realize the transformation of themode of development.