Research Programs: Special Projects

Firm Dynamics and Business Dynamism in Japan

Project Leader/Sub-Leader

MIYAKAWA Daisuke (Faculty Fellow)

Leader

Overview

This project aims to derive insights that will allow Japan to spur economic growth. It will focus on empirical analysis of micro-level firm dynamics and business dynamism, while also conducting macro-level studies based on the development of theoretical models and simulation analysis. First, to understand the mechanisms of firm size and productivity evolution, we will conduct extensive empirical and theoretical research on micro-level firm growth, downsizing, entry, and exit, which determine macro-level productivity dynamics.

Second, to complement this standard firm dynamics research, we will measure the long-term dynamics of firm growth rate dispersion, productivity differences between frontier and laggard firms, markups and profit margins, and market concentration as captured by macro-level aggregates. We will then derive theoretical insights and empirical implications from these measurements.

Third, from the perspective of achieving macroeconomic growth, we will evaluate various policies that target micro-level firm dynamics.

May 7, 2026 - October 31, 2028

(During the research project period, the research activity period is set from May 7, 2026, to April 30, 2028, and the data usage reporting period is set from May 1, 2028 to October 31, 2028.)