The Japanese Service Industry: An International Comparison

Abstract

This survey essay examines the development and internationalization of the Japanese service sector. For this purpose, statistical data is analyzed together with a literature review. The Japanese service sector is smaller in contributions to gross domestic product (GDP) and employment share than the service sectors in other advanced economies. Limited research has been conducted to improve our knowledge of the Japanese service economy. The second part of the essay presents an overview of the current literature. It reveals the main service subsectors together with some of the difficulties associated with their internationalization. The study shows that the Japanese service sector has complex connections to the larger keiretsu groups, but that their international competitiveness is limited.