ESRI Discussion Paper Series No.395 Investigation of the Growth Enhancing Effects of the Recent Growth Policies - Findings from the Previous Studies -

This study investigates the growth enhancing effects of the recent growth policies in Japan, focusing on productivity improvements. Specifically, we survey the recent studies on the growth enhancing effects and discuss the potential effects of the growth policies implemented by the Japanese government on the productivity and the economic growth.
Based on the findings from recent studies, we add up the estimates of direct effects of the policies on the total factor productivity (TFP) and labor productivity to quantify the magnitude of the policy effects as a whole. The resulting productivity enhancing effects range from 0.4 percentage point to 0.8 percentage point, which has a potential to improve the economic growth. As the Japanese government further implements various growth policies, including public-private partnership investments, it is informative to make it possible to verify the effects of the growth policies, including whether the potential effects discussed in this study are actually materialized.