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Macro Effects of Corporate Restructuring in Japan

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  • Mr. Se-Jik Kim

Abstract

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.

Suggested Citation

  • Mr. Se-Jik Kim, 2003. "Macro Effects of Corporate Restructuring in Japan," IMF Working Papers 2003/203, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2003/203
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    Cited by:

    1. Deroose, Servaas & Turrini, Alessandro, 2005. "The Short-Term Budgetary Implications of Structural Reforms. Evidence from a Panel of EU Countries," CEPR Discussion Papers 5217, C.E.P.R. Discussion Papers.
    2. Alan Ahearne & Naoki Shinada, 2005. "Zombie firms and economic stagnation in Japan," International Economics and Economic Policy, Springer, vol. 2(4), pages 363-381, December.
    3. Kazunari Ohashi & Mr. Manmohan Singh, 2004. "Japan’s Distressed-Debt Market," IMF Working Papers 2004/086, International Monetary Fund.

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