The Role of Competitiveness in Japan's Export Performance, 1954-58

Abstract

APAN ACHIEVED a spectacular increase in exports during the four-year period 1954-57. From $1,275 million in 1953, total exports increased to $2,858 million in 1957, or by 124 per cent. In volume terms, the gain was slightly larger, 132 per cent, as the unit value of exports declined somewhat. Shipments of manufactured goods,l of which Japan is among the leading world exporters and which constituted about 87 per cent2 of total Japanese exports, increased by 143 per cent. This increase was the largest among the major trading nations of the world. During the same period, exports of manufactures from the Federal Republic of Germany increased by 104 per cent, from the United States by 51 per cent,3 and from the United Kingdom by 31 per cent. It will be argued later that the larger expansion of Japanese exports cannot, to any great extent, be viewed as merely evidence of the recovery of Japan's prewar position in world trade. In 1953, Japan's total exports paid for only 61 per cent of its imports; in balancing foreign payments, special government receipts4 played an important role, being equal to about two thirds of the value of exports. By 1957, exports had taken over a much larger share of the burden of external payments; in that year they covered 88 per cent of imports. On the other hand, the significance of special government receipts declined, as they were only a sixth of the value of exports.