CURING JAPAN’S ECONOMIC MALAISE

• Published in: Straddling Economics and Politics p. 165
• Main Author: Charles Wolf
• Format: Book Chapter
• Language: English
• Published: RAND Corporation 11.09.2002
• Edition: 1
• Subjects: Ad valorem taxes; Behavioral sciences; Business; Business operations; Business structures; Cognitive psychology; Commerce; Development economics; Development studies; Economic conditions; Economic development; Economic fluctuations; Economic growth; Economic recessions; Economic recovery; Economic trends; Economics; Emotion; Emotional states; Exports; Governance; Government; Import competition; Imports; International economics; Macroeconomics; Malaise; Political science; Psychology; Sales taxes; Social sciences; Taxation; Taxes; Trade
• ISBN: 0833031813; 9780833031815

For Japan to emerge from its severe and protracted economic doldrums nothing will help as much as abandoning its deep-seated commitment to an export-led economic strategy. Toward this end, Japan should remove the pervasively preferential treatment favoring its export firms and industries, and protecting them, along with domestic industries, from potentially competitive imports. Japan’s export-led strategy should be replaced by an “import-accommodating” one, which would not only benefit Japan but would contribute significantly to the economic recovery of the entire Asian region, as well. This prescription is heretical. According to standard economic analysis, imports are deflationary while exports are expansionary.