--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-40/the-causes-of-japans-economic-slowdown-an-analysis-based-on-the-japan-industrial-productivity-database/" title: "The Causes of Japan’s Economic Slowdown: An Analysis Based on the Japan Industrial Productivity Database" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T08:01:52+00:00" date_modified: "2026-07-13T08:01:52+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2021" ipm_keyword: - "1995-2015" - "capital accumulation" - "demographics" - "economic slowdown" - "EU KLEMS" - "growth accounting" - "Japan" - "JIP database" - "RIETI" - "TFP" - "working-age population" ipm_research_theme: - "Productivity trends and comparisons" ipm_country_focus: - "France" - "Germany" - "International" - "Japan" - "United Kingdom" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The Causes of Japan’s Economic Slowdown: An Analysis Based on the Japan Industrial Productivity Database Canonical URL: https://csls.ca/ipm-archive/ipm-issue-40/the-causes-of-japans-economic-slowdown-an-analysis-based-on-the-japan-industrial-productivity-database/ # The Causes of Japan’s Economic Slowdown: An Analysis Based on the Japan Industrial Productivity Database [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-40-3-Fukao-Kim-Kwon.pdf) Cite this article × Cite this article as: Fukao, Kyoji, YoungGak Kim, and HyeogUg Kwon. 2021. “The Causes of Japan’s Economic Slowdown: An Analysis Based on the Japan Industrial Productivity Database.” International Productivity Monitor, No. 40 (Spring 2021): 56–88. https://www.csls.ca/ipm-archive/ipm-issue-40/the-causes-of-japans-economic-slowdown-an-analysis-based-on-the-japan-industrial-productivity-database/ ## Authors: - Kyoji Fukao Hitotsubashi University / RIETI / IDE-JETRO - YoungGak Kim Senshu University - HyeogUg Kwon Nihon University / RIETI ## IPM Issue 40 Spring 2021 pp. 56–88 ## Related IPM articles [Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Barbara Fraumeni Fall 2025 | IPM Issue 49 | pp. 103–115](https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [The UK Productivity Slowdown: A Review of Timing, Magnitude, and Drivers Josh Martin Spring 2025 | IPM Issue 48 | pp. 1–34](https://csls.ca/ipm-archive/ipm-issue-48/the-uk-productivity-slowdown-a-review-of-timing-magnitude-and-drivers/) [Appendix: UK Productivity Growth Rates Across Data Vintages and Studies Josh Martin Spring 2025 | IPM Issue 48 | pp. 65–73](https://csls.ca/ipm-archive/ipm-issue-48/appendix-uk-productivity-growth-rates-across-data-vintages-and-studies/) [Opportunities and Risks of Artificial Intelligence for Productivity Francesco Filippucci, Peter Gal, Katharina Laengle, Matthias Schief, Filiz Unsal Spring 2025 | IPM Issue 48 | pp. 1–26](https://csls.ca/ipm-archive/ipm-issue-48/opportunities-and-risks-of-artificial-intelligence-for-productivity/) [Cracking the Productivity Code: An International Comparison of UK Productivity John Van Reenen, Xuyi Yang Spring 2024 | IPM Issue 46 | pp. 60–82](https://csls.ca/ipm-archive/ipm-issue-46/cracking-the-productivity-code-an-international-comparison-of-uk-productivity/) [Appendix: EUKLEMS & INTANProd Industry Coverage and Intangible Asset Treatment Filippo Bontadini, Carol Corrado, Jonathan Haskel, Massimiliano Iommi, Cecilia Jona-Lasinio, Tsutomu Miyagawa Spring 2024 | IPM Issue 46 | pp. 1–4](https://csls.ca/ipm-archive/ipm-issue-46/appendix-euklems-intanprod-industry-coverage-and-intangible-asset-treatment/) [IPM Issue 46 Editors’ Overview Andrew Sharpe, Bart van Ark Spring 2024 | IPM Issue 46 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-46/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Using the Japan Industrial Productivity Database (JIP) and the EU KLEMS database 2017, we compare the sources of economic growth of Japan, the United States, Germany, France, and the U.K. for the period 1995–2015 using growth accounting. We find that the reasons why Japan’s economic growth during the 2005–2015 period was much slower than that of the other major economies are the decline in the working-age population and sluggish investment in capital services. Among the five countries, Japan was the only one whose growth rate of the capital stock was lower than the steady state growth rate. Another reason for the slowdown in Japan’s economic growth in 2005–2015 was the decline in TFP growth, which was caused by a drop in productivity growth in a small number of industries, including electronic data processing machines, electricity, and wholesale trade. À l’aide de la base de données de productivité industrielle japonaise (JIP) et de la base de données EU KLEMS 2017, nous comparons les sources de la croissance économique du Japon, des États-Unis, de l’Allemagne, de la France et du Royaume-Uni pour la période 1995-2015 à l’aide de la comptabilité de la croissance. Nous constatons que les raisons pour lesquelles la croissance économique du Japon au cours de la période 2005-2015 était bien plus lente que celle des autres grandes économies sont le recul de la population en âge de travailler et un investissement ralenti dans les services du capital. Parmi les cinq pays, le Japon était le seul dont le taux de croissance du stock de capital était inférieur au taux de croissance à l’état stationnaire. Une autre raison du ralentissement de la croissance économique du Japon en 2005-2015 était le recul de la croissance de la PMF. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-40-3-Fukao-Kim-Kwon.pdf)