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The impact of the ageing society on regional economies

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Chapter Summary

This chapter examines the way demographic change will influence the economic wellbeing of different regions in Japan. It attempts to clarify what kind of demographic and economic mechanisms will be at work during the adjustment process. The task is to shed light on the effects those mechanisms are likely to bring about and to examine how they are interrelated. There can be no doubt that macroeconomic factors like economic growth and the future development of the labour market will have repercussions on regional economic development. The Japanese Ministry of Economy, Trade and Industry asserts that it is crucial for sustainable development of regional economies and societies to generate income from industries which have their sales market outside the region, such as the manufacturing sector, agriculture and tourism. Recent research indicates that there will be challenges both for metropolitan and non-metropolitan areas in the wake of demographic ageing.

Keywords: demographic ageing; Japanese economy; labour market; regional economic development



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