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The Other Side of the Trade Imbalance: What Will Japan Do?

Listed author(s):
  • Ryuzo Sato
  • John A. Rizzo
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    With the mounting U.S. trade deficit, much attention has centered on the role of U.S. macroeconomic policy and economic structure as contributing factors. This paper contends that the economic structure and policies of Japan have also done much to contribute to the trade imbalance. Institutional features of Japan's macroeconomy and industrial structure which have promoted her large trade surplus are discussed and industrial policies evaluated. Given the nature and magnitude of the role played by Japan in causing the bilateral trade imbalance, the next question the paper addresses is how Japan might best act to alleviate this imbalance. This section of the paper examines fiscal, monetary and other policy initiatives Japan might take to reduce the trade imbalance. The evidence stresses the desirability of expanding Japan's services industries, particularly leisure-related services.

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    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2111.

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    Date of creation: Dec 1986
    Handle: RePEc:nbr:nberwo:2111
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    1. Horioka, C.Y., 1991. "Saving in Japan," ISER Discussion Paper 0248, Institute of Social and Economic Research, Osaka University.
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