The Impact of Industrial Structure Adjustment on Economic Growth in Japan

Industrial structure adjustment reflects the dynamic association between industries. The speed of industrial structure adjustment and the proportion changes in the three industrial structures are important factors that affect economic growth. In order to make quantitative analysis on the impact of Japanese industrial structure adjustment to economic growth, the paper reviews the evolution process of Japanese three industrial structures, measures the speed of Japanese industrial structure adjustment by the K value of industrial structure changes. And then this paper analyzes the impact of speed of industrial structure adjustment on economy growth by impulse response function, and assesses the contribution of the proportion changes in the three industrial structures on economy growth by econometric regression model. The empirical results show that the speed of industrial structure adjustment has a positive stimulating role on economic growth. Since 1985, the output elasticity of Japanese primary industry drops to negative, secondary industry and tertiary industry increase. However, the magnitude of secondary industry rise is greater than tertiary industry. Japanese industrial structure exist the problem of excessive servicing. Finally, this paper puts forward policy recommendations for China to speed up industrial structure adjustment. Key words: Japanese economic; Industrial structure; Economic growth; The three industries