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Product Market Competition and Economic Performance in Japan

Author

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  • Jens Høj
  • Michael Wise

Abstract

Empirical work shows that competition is important for promoting economic growth. However, in Japan the promotion of competition has long been compromised by ministerial guidance and exemptions from the competition law. Thus, the level and growth of productivity have been low in many domestically oriented sectors and consumer welfare has suffered under high prices and the slow introduction of new goods and services. This misallocation of resources contributes to explaining why the Japanese economy had difficulty in coming out of the quasi-stagnation of the past decade. Recognising that gains from more pro-competition policies are substantial, the Japanese government has now made the promotion of competitive markets a cornerstone of its economic policy. Reforms to promote product market competition in Japan should inter alia focus on strengthening the legal framework by increasing fines to a deterrent level and introducing cartel destabilising measures, such as a leniency ... Concurrence sur les marchés de produits et performance économique au Japon Des études empiriques montrent que la concurrence est importante pour promouvoir la croissance économique. Mais au Japon, la stimulation de la concurrence a longtemps été compromise par des directives ministérielles et des exemptions au droit de la concurrence. Aussi, le niveau et le taux de croissance de la productivité ont été bas dans de nombreux secteurs tournés vers le marché intérieur, et le bien-être des consommateurs a souffert de prix élevés et d’une diffusion trop lente des nouveaux biens et services. Cette mauvaise allocation des ressources contribue à expliquer pourquoi l’économie japonaise n’est pas parvenue à sortir de la quasi-stagnation de la dernière décennie. Conscient que des politiques plus propices au jeu de la concurrence peuvent s’avérer très bénéfiques, le gouvernement japonais a fait de la promotion des marchés concurrentiels l’une des pièces maîtresses de sa politique économique. Les réformes visant à stimuler la concurrence sur les marchés de produits au ...

Suggested Citation

  • Jens Høj & Michael Wise, 2004. "Product Market Competition and Economic Performance in Japan," OECD Economics Department Working Papers 387, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:387-en
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    File URL: http://dx.doi.org/10.1787/222508788602
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    Cited by:

    1. Grossmann, Volker & Steger, Thomas M., 2008. "Anti-competitive conduct, in-house R&D, and growth," European Economic Review, Elsevier, vol. 52(6), pages 987-1008, August.
    2. International Monetary Fund, 2005. "Finland; Selected Issues," IMF Staff Country Reports 05/36, International Monetary Fund.
    3. Rafael Fernández Sánchez, 2005. "Irlanda y Finlandia: Dos Modelos de Especialización en Tecnologías Avanzadas," Policy Papers del Instituto Complutense de Estudios Internacionales 05-03, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.

    More about this item

    Keywords

    antitrust law; cartel; competition law; droit de la concurrence; energy; entente; industrie de réseau; Japan; Japon; marchés publics; network industries; postal services; productivity and growth; productivité et croissance; public procurement; regulatory reforms; retail sector; réforme de la réglementation; réglementation anti-trust; secteur de détail; services postaux; telecommunications; transport; transportation; télécommunications; énergie;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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