Japan's Persistent Trade Surplus: Policies for Adjustment
While part of the recent increase in the Japanese trade surplus can be attributed to the Japanese recession, the surplus has widened despite the appreciation of the yen and enactment of policies to open Japanese markets. We review the trade surplus issue in the light of theories of trade and current account adjustment. We evaluate the potential for exchange appreciation and Japanese fiscal policy to reduce the imbalance, estimating their effects using simulations of the NIRA-LINK model of the US-Japan-world economy. The simulations show that moderate use of macropolicies would not be sufficient to eliminate the trade imbalance.
|Date of creation:||1994|
|Contact details of provider:|| Postal: 2424 Maile Way, Honolulu, HI 96822|
Web page: http://www.economics.hawaii.edu/
More information through EDIRC
|Order Information:|| Web: http://www.economics.hawaii.edu/research/working.html Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- F. Gerard Adams & Byron Gangnes & Shuntaro Shishido, 1993.
"Macro and Industry Implications of Voluntary Export Restraints on US - Japan Trade,"
199310, University of Hawaii at Manoa, Department of Economics.
- F. Gerard Adams & Byron Gangnes & Shuntaro Shishido, 1994. "Macro and Industry Implications of Voluntary Export Restraints on US-Japan Trade," The World Economy, Wiley Blackwell, vol. 17(5), pages 737-757, 09.
- Peter Hooper & Jaime R. Marquez, 1993. "Exchange rates, prices, and external adjustment in the United States and Japan," International Finance Discussion Papers 456, Board of Governors of the Federal Reserve System (U.S.).
- Ronald G. Bodkin & Lawrence R. Klein & Kanta Marwah, 1991. "A History of Macroeconometric Model-Building," Books, Edward Elgar Publishing, number 51.
- Sven W. Arndt & J. David Richardson, 1987. "Real-Financial Linkages Among Open Economies," NBER Working Papers 2230, National Bureau of Economic Research, Inc.
- Rose, Andrew K., 1991. "The role of exchange rates in a popular model of international trade : Does the 'Marshall-Lerner' condition hold?," Journal of International Economics, Elsevier, vol. 30(3-4), pages 301-316, May.
- Kouri, Pentti J K, 1976. " The Exchange Rate and the Balance of Payments in the Short Run and in the Long Run: A Monetary Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 78(2), pages 280-304.
- Avinash Dixit, 1989. "Hysteresis, Import Penetration, and Exchange Rate Pass-Through," The Quarterly Journal of Economics, Oxford University Press, vol. 104(2), pages 205-228.
- Dornbusch, Rudiger, 1973. "Devaluation, Money, and Nontraded Goods," American Economic Review, American Economic Association, vol. 63(5), pages 871-880, December.
- Baldwin, Richard, 1988.
"Hyteresis in Import Prices: The Beachhead Effect,"
American Economic Review,
American Economic Association, vol. 78(4), pages 773-785, September.
- Assaf Razin, 1993.
"The Dynamic-Optimizing Approach to the Current Account: Theory and Evidence,"
NBER Working Papers
4334, National Bureau of Economic Research, Inc.
- Razin, A., 1993. "The Dynamic-Optimizing Approach to the Current Account: Theory and Evidence," Papers 2-93, Tel Aviv - the Sackler Institute of Economic Studies.
- Takatoshi Ito, 1994. "On Recent Movements of Japanese Current Accounts and Capital Flows," NBER Chapters, in: Macroeconomic Linkage: Savings, Exchange Rates, and Capital Flows, NBER-EASE Volume 3, pages 31-52 National Bureau of Economic Research, Inc.
- repec:iie:ppress:34 is not listed on IDEAS
- Swoboda, Alexander K, 1976. " Comment on P. J. K. Kouri, "The Exchange Rate and the Balance of Payments in the Short Run and in the Long Run: A Monetary Approach."," Scandinavian Journal of Economics, Wiley Blackwell, vol. 78(2), pages 305-308.
- Marcus Noland & Bela Balassa, 1988. "Japan in the World Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 0412, 03.
- Sidney S. Alexander, 1952. "Effects of a Devaluation on a Trade Balance," IMF Staff Papers, Palgrave Macmillan, vol. 2(2), pages 263-278, April.
- Robert Corker, 1989. "External Adjustment and the Strong Yen: Recent Japanese Experience," IMF Staff Papers, Palgrave Macmillan, vol. 36(2), pages 464-493, June.
- Maurice Obstfeld, 1980.
"Macroeconomic Policy, Exchange-Rate Dynamics, and Optimal Asset Accumulation,"
NBER Working Papers
0599, National Bureau of Economic Research, Inc.
- Obstfeld, Maurice, 1981. "Macroeconomic Policy, Exchange-Rate Dynamics, and Optimal Asset Accumulation," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1142-1161, December.
When requesting a correction, please mention this item's handle: RePEc:hai:wpaper:199404. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Web Technician)
If references are entirely missing, you can add them using this form.