Macro Effects of Corporate Restructuring in Japan

 
Author/Editor: Kim, Se-Jik
 
Publication Date: October 01, 2003
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper presents a framework for quantitatively evaluating the macroeconomic effects of corporate restructuring and applies it to Japan. Using firm-level financial statement data, it estimates total factor productivity (TFP) of individual Japanese firms. Given the estimated distribution of productivity across firms, the paper simulates the effect of optimal restructuring, that is, reallocation of resources from less-productive firms to more-productive ones, on the dynamic path of aggregate output. The results show that the benefits of restructuring could substantially exceed the costs.
 
Series: Working Paper No. 03/203
Subject(s): Labor | Japan | Productivity | Private sector | Capital

Author's Keyword(s): Corporate restructuring | total factor productivity | macro effects | Japan
 
English
Publication Date: October 01, 2003
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2032003 Pages: 32
Price:
US$15.00 (Academic Rate:
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