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Does Japan import less than it should?

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  • Takeuchi,Kenji

Abstract

Japan's continuing large current account surpluses have promoted a series of investigators to examine the volume and the structure of the goods that Japan imports. The usual charge is that Japan's level of manufactured imports is too low and that it is low because Japan has erected a wall of trade barriers that limits access by foreign suppliers of manufactured goods. Recent studies have looked at this question to see if Japan's overall imports are lower than they should be, and specifically if Japan imports fewer manufactures than other industrial countries. This paper presents a review of the econometric literature and these give diverse results. Additionally, if Japan does import a lower volume of manufactures, why is that so? Is it because of trade and tariff barriers, the Japanese marketing system, or the tastes of Japanese consumers? None of the studies resolved these questions.

Suggested Citation

  • Takeuchi,Kenji, 1988. "Does Japan import less than it should?," Policy Research Working Paper Series 63, The World Bank.
  • Handle: RePEc:wbk:wbrwps:63
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    References listed on IDEAS

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    1. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    2. Gary R. Saxonhouse, 1989. "Differentiated Products, Economies of Scale, and Access to the Japanese Market," NBER Chapters, in: Trade Policies for International Competitiveness, pages 145-184, National Bureau of Economic Research, Inc.
    3. Robert Z. Lawrence, 1987. "Imports in Japan: Closed Markets or Minds?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(2), pages 517-554.
    4. Fitchett, D.A., 1988. "Agricultural Trade Protectionism In Japan," World Bank - Discussion Papers 28, World Bank.
    5. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
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