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Did divine wind rescue Japan out of the lost decade?

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  • Ogawa, Kazuo
  • Saito, Mika
  • Tokutsu, Ichiro

Abstract

Strong external demand and micro-level productivity-enhancing efforts are key determinants of export. This study gives empirical evidence on the relative importance of these two factors in generating exports. Specifically we investigate Japanese export growth in the 2000s that helped Japan exit the severe decade-long stagnation known as the lost decade. Estimating the firm-level export function, we uncover quantitatively the source of the export surge during this period. Evidence shows that firms’ efforts to enhance productivity were more important than the so-called “divine wind” or exogenous external demand.

Suggested Citation

  • Ogawa, Kazuo & Saito, Mika & Tokutsu, Ichiro, 2017. "Did divine wind rescue Japan out of the lost decade?," Journal of the Japanese and International Economies, Elsevier, vol. 44(C), pages 39-51.
  • Handle: RePEc:eee:jjieco:v:44:y:2017:i:c:p:39-51
    DOI: 10.1016/j.jjie.2017.03.002
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    More about this item

    Keywords

    Lost decade; Export; Total factor productivity; Price-Cost margin;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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