The Japanese Economy

The following sections are included:

• Preface

• Contents

The following sections are included:

• A Densely Populated Island Country
  • A densely populated country
  • Growth rate of population
  • Concentration in the urban area

• A Country with Meagre Natural Resources

• A Country of A High GDP
  • A high level of GDP
  • GDP per capita
  • A period of rapid economic growth
  • The level vs. the growth rate of GDP
  • GDP and welfare
  • International comparison of GDP

• An Industrial Country
  • The industrial composition in an international comparison
  • The industrial composition in time series

• A Country with Strong International Economic Relations
  • The necessity for large production from scarce resources
  • Borrowed technology
  • The balance of payments

The following sections are included:

• The Miracle of the Japanese Economy

• The Analysis of High Economic Growth by the Growth Accounting Method
  • The growth accounting method vs. the econometric model method
  • The listing of all products
  • GDP is the total of final products
  • GDP is total income
  • Value added
  • An illustration of the growth accounting method
  • The analysis of the GDP growth, 1960-73, by the growth accounting method

• The Analysis of High Economic Growth by the Econometric Model Method
  • The econometric model method
  • The economic theory of GDP determination
  • The composition of GDP
  • Consumption is determined by income
  • Disposable income of households
  • Imports are determined by GDP
  • Macroeconomic model
  • Econometrics
  • Macroeconometric model
  • An illustration of the econometric method
  • The distinction between the growth accounting method and the econometric model method
  • The analysis of the GDP growth in 1960-73 by the econometric model method

The following sections are included:

• The Theory of the Production Function
  • Input and output
  • Technology
  • Two remarks

• The Estimation of the Production Function
  • The production function for GDP
  • The estimation of the parameters of the production function

• The Growth Accounting of the Supply Side for High Economic Growth
  • An illustration of the growth accounting method
  • The analysis of the GDP growth, 1960-73, by the growth accounting method

• The Barriers to Growth
  • Supply shortage
  • Current account deficits
  • Government deficits

• The Characteristics of the Growth Accounting Method on the Supply Side

The following sections are included:

• Industrialization and Technical Progress
  • Gross output vs. value added
  • Industrialization, 1955-73

• The Rate of Technical Progress for Individual Industries
  • The production function for gross output
  • The rates of technical progress for individual industries
  • Two types of production functions: gross output and value added

• Rapid Technical Progress and Rapid Economic Growth
  • Technical progress and the rate of profit
  • Technical progress and the growth rate of capital
  • Technical progress and the growth rate of output
  • Industrialization and technical progress
  • Remarks on evidences in diagrams

• Industrialization and Resource Allocation
  • Productivity increase by improved resource allocation
  • The extended model
  • Technical progress and improved resource allocation

• Concluding Remarks

The following sections are included:

• Rapid Growth vs. Slow Growth: An International Comparison
  • Growth rates of GDP, GDP per capita and TFP (manufacturing)
  • Remarks on the estimation method of TFP

• The Stages of Technical Progress
  • The stages of technical progress within manufacturing
  • The development of the industrial structure in manufacturing
  • The wave of technical progress in the East Asian countries

• The Economics of Imitative Technology
  • The economic effect of imitative technology
  • The doctrine of imitative technology
  • The features of this study

• The Conditions of Imitative Technology
  • The sovereign state
  • A technological backlog
  • Natural resources
  • Openness to the outside world
  • Quality of labor
  • Finance of industrial funds
  • The protection of infant industries
  • Social atmosphere

• Concluding Remarks

The following sections are included:

• The Macroeconometric Model
  • A feature of the model: (1) Expenditure sector
  • A feature of the model: (2) Distribution sector
  • A feature of the model: (3) Price sector
  • A feature of the model: (4) Government, banks and external balances
  • Simulation of the macroeconometric model

• The Demand Factors
  • Demand factor (1): Government consumption expenditures, CG
  • The swing in the effect of government expenditure expansion on the GDP growth
  • A comparison with the estimates by simpler methods
  • The limits to expansion policy: short-run vs. long-run
  • Accommodating monetary action
  • Demand factor (2): Private fixed investment, IOP
  • Demand factor (3): Exports of goods and services, E

• The Supply Factors
  • Supply factor (1): Technical progress
  • Supply factor (2): Labor
  • Supply factor (3): Capital stock

• The Causes of High Economic Growth: Conclusion
  • The quasi-stationary state
  • The contribution of population and labor force
  • The contribution of technical progress
  • The contribution of external supply factors
  • The combined contribution of the three supply factors
  • Concluding remarks: (1) The role of capital in economic growth
  • Concluding remarks: (2) The contributions of demand factors to economic growth

The following sections are included:

• The Turning Point of the Economic Structure

• The Rise in Energy Prices

• An Econometric Estimation of the Influence of the Oil Crises on the Japanese Economy

• The Transition to Flexible Exchange Rates and External Liberalization
  • The transition to the flexible exchange rate system
  • Trade liberalization
  • Export growth and trade friction
  • Liberalization of capital movement

• An Econometric Estimation of the Influence of Flexible Exchange Rates on the Japanese Economy

• The Slowdown of the Rate of Technical Progress

• An Econometric Estimation of the Influence of the Slowdown of Technical Progress on the Japanese Economy

• The Change in the Composition of Effective Demand
  • Growth accounting, 1974-1993
  • The oil crisis period: 1973-1982
  • The export-drive period, 1982-1992
  • Depression after 1991: 1992-96
  • Government spending and the ratio of the bond balance to GDP

• The Influence of Increased Military Expenditures on Economic Performance

The following sections are included:

• Prosperity and Depression

• Chronological Chart of Business Cycles

• Theories of Business Cycles
  • Variability in fixed investment: (1) Noneconomic factors
  • Variability in fixed investment: (2) Acceleration principle
  • Variability in fixed investment: (3) Time lags
  • Time lags in the multiplier-accelerator process
  • The process of full cycle

• General Features of Historical Business Cycles
  • Booms
  • Slumps

• A Short History of Business Cycles: (1) The Pre-Oil-Crisis Period
  • The postwar disorder and its ending, 1945-50:
  • The contraction of the 1st cycle, 1950-51:
  • The 2nd cycle, 1951-54:
  • The 3rd cycle, 1954-58:
  • The 4th cycle, 1958-62:
  • The 5th cycle, 1962-65:
  • The 6th cycle, 1965-71:
  • The 7th cycle, 1971-75:

• A Short History of Business Cycles: (2) The Post-Oil-Crisis Period
  • The 8th cycle, 1975-77:
  • The 9th cycle, 1977-83:
  • The 10th cycle, 1983-86:
  • The 11th cycle, 1986-93:

• Time Lags in Structural Equations and Business Cycles

• Fluctuations in Exchange Rates and Business Cycles
  • Fluctuations in exchange rates
  • The J-curve effect
  • The estimated values of the price elasticity
  • The movement of exchange rates and business cycles

The following sections are included:

• Prolonged Depression in the Late 1990s
  • The misinvestment of large funds
  • The delay of government expansionary policy
  • The delay of monetary policy
  • General sentiments against the use of public money for recovery

• Towards a Better Economic Structure: (1) Restructuring the Government

• Towards a Better Economic Structure: (2) Restructuring the Banking Sector

• Towards a Better Economic Structure: (3) The Future of Technology in Japan

The following sections are included:

• Appendix A
  • List of Equations
  • The expenditure sector
  • The distribution sector
  • The price sector
  • Government, banks and external balances
  • Additions to the model, 1974-93
    • List of variables
    • Final test

• Appendix B
  • Official Reference Dates of Business Cycles and Main Economic Events

• Bibliography

• Author Index

• Subject Index