Homework Help

Will Japan's declining birth rate adversely impact Japan's potential for future...

user profile pic

jcano02 | Student, Grade 9 | eNotes Newbie

Posted July 12, 2012 at 7:28 PM via web

dislike 2 like

Will Japan's declining birth rate adversely impact Japan's potential for future economic growth?

1 Answer | Add Yours

user profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted July 12, 2012 at 8:09 PM (Answer #1)

dislike 2 like

Unless something unforeseen happens, Japan's declining birth rate will hurt its potential for future economic growth.  Economic growth can come from two sources.  It can come from a growing labor force or it can come from increased productivity.  There is no reason to believe that there will be huge booms in productivity in a modern economy like Japan's.  Therefore, economic growth would have to come from growth in the labor force.  With Japan's declining birth rate and its reluctance to allow immigration, Japan's labor force is not likely to grow and is, in fact, likely to shrink.  If the labor force shrinks, there will not be any significant growth unless major changes in productivity occur.

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes