Europacifica Delivers Case Study for APEC Economic Policy Report
In 2016, Europacifica Consulting delivered the case study, Financial Services Sector Reform in Japan, for inclusion in the APEC Economic Policy Report (2016). In the words of APEC’s Policy Studies Unit:
The 2016 APEC Economic Policy Report, ‘Structural Reform and Services’, tackles a subject at the very heart of current growth, productivity and economic inclusion challenges facing the APEC region.
In the main policy report, APEC cites the importance of our case study in exploring the sources of Japan’s economic stagnation:
Fink (2016) shows a collapse in productivity growth in services was a major factor underlying lagging growth performance of Japan. Reforms in the financial sector pursued in the 2000s aimed at both addressing a banking crisis and improving the allocation of credit (savings). While they were successful in stabilizing the banking system, they were not sufficient to mobilize the new entry/investment needed to improve services performance through introduction of new techniques, management and products. Fink argues that a key reason for the limited payoff to reform efforts was insufficient attention to forcing through corporate governance changes and implementing capital market reforms that could provide alternative channels for funding and competitive pressure on lagging firms in the services sectors to improve their performance.
The case study may be found in Annex A of the report.
The case study was also prepublished by Columbia University’s APEC Studies Center as well: