Japanese Economy Research Articles

Research on the Japanese Economy: The Impact of US-Japanese Relationship on the Economic Development of Japan After WWII

Living in a world full of diversity with all the countries having their specific ways and ideas of running and governing, the relationship between states and states becomes one of the most crucial factors in engaging in the peace of the world, which ensures the development together with the safety of every country on the planet. This piece of research paper investigates how the relationship of one country to another can have an impact on its total development, especially in terms of economics. In the paper, the author researches the specific case of the US-Japanese relationship and discusses how the relationship between Japan and the United States can influence economic development in Japan. The author provided two time period scenarios, which are the “Economic Miracal” era of Japan and the “Asset Price Bubble” era of Japan. By examining these case scenarios, the author concluded that a healthy US-Japanese relationship will subsequently lead to a healthy development of Japan’s economy. This provided the suggestion that states should maintain a balanced relationship with their allies to keep healthy growth as well as development.

Study on the Type of the type of wealth and tax

The Japanese economy is facing a new phase from a long-term recession over the past 30 years to an annual economic growth of around 2%. With the recovery of the Japanese economy, not only foreigners but also Japanese capital are returning to Japan. Already, the Japanese Composite Stock Price Index has exceeded 39000 points before the bubble burst. Changes in the yen exchange rate are also inducing the inflow of foreign capital into Japan. In this economic trend, investors are paying attention to the Japanese capital market, and in particular, the wealthy in Japan are focusing on the Japanese domestic market to increase their assets. In particular, the Japanese financial market is attracting attention as a relatively safe asset due to the unstable environment at home and abroad. According to this trend, asset management of the wealthy in Japan is also carried out in various ways. Sometimes there are considerable losses due to asset management failures. That is why it has emerged recently to use various tax savings. Companies and individuals show the same behavior, but on the contrary, the government sometimes strengthens monitoring in various ways to prevent a decrease in tax revenue. This phenomenon has recently become common in Japan. This paper will help the wealthy in Japan understand their asset management and the Japanese government's response by examining the types of asset management and measures to manage assets through tax savings. It is also expected that problems with asset management and implications for government policies will be used as reference for various countries. Therefore, this paper will focus on the asset management and tax savings of the wealthy in Japan.

Analysis of postdisaster economy using high-resolution disaster and economy simulations.

We present an integrated framework that utilizes high-resolution seamless simulations of disasters and national economies for estimating the economic impacts of disasters. The framework consists of three components: a physics-based simulator to simulate the disaster and estimate the response of the infrastructure; a tool that estimates the losses suffered by the infrastructure based on its response; and an agent-based economic model (ABEM) that simulates the national economy considering the infrastructure damage and postdisaster decisions of the economic entities. The ABEM used in the framework has been implemented in a high-performance computing environment to simulate large economies at 1:1 scale. Furthermore, it has been calibrated to the Japanese economy using publicly available macroeconomic data and validated to the Japanese economy under the business-as-usual scenario. We demonstrate the integrated framework by simulating a potential Nankai-trough earthquake disaster and estimating its impacts on the Japanese economy. The seismic response of 1.8 million buildings of the Osaka-bay area has been estimated using a large-scale earthquake disaster simulator and corresponding repair costs are estimated using the Performance Assessment Calculation Tool. As per our estimates, repair costs amount to approximately 15 trillion Yen. Considering the investments made by impacted households and firms toward recovery, the postdisaster economy is simulated using the ABEM for 5 years under two recovery scenarios. Industrial production is expected to recover in three quarters whereas 10-13 quarters will be required to finish all the repairwork.

Welfare effects of health insurance reform: The role of elastic medical demand

Some medical demand is inelastic to price fluctuations, but not all. This paper examines the role of the price elasticity of medical demand on the welfare effects of public health insurance reform. I develop a computational general equilibrium life-cycle model for heterogeneous agents with varying income, wealth, and health that allows for endogenous medical spending. I calibrate the model for the Japanese economy. If medical spending is totally price-inelastic, increasing copayments will improve the welfare of future generations, but harm all current generations, particularly older people with low income or poor health. In contrast, the welfare gain for newborns is significantly greater in the empirically observed situation where medical spending includes some price-elastic components. Moreover, the reform reduces welfare losses for current individuals and may benefit younger generations.

Introduction to special issue of the Japanese political economy: The rise and fall of the export-led industrialization model in the changing global economy

Introduction to special issue of the Japanese political economy: The rise and fall of the export-led industrialization model in the changing global economy

Comparative Analysis Between Japan's Real Estate Economy and China's Real Estate Status

Japan's real estate bubble economy in the 1990s caused a major blow to the Japanese economy, Japan entered the "disappearing 30 years". The causes of Japan's real estate bubble economy and the reasons why the bubble burst are worthy of the world's countries to learn from. 21st century since the rapid development of China's real estate economy, housing prices are growing rapidly. The real estate economy has been overheated in some areas, although the Chinese government has taken relevant measures to cool down, still can't relax the vigilance, people should always pay attention to the overheated areas of real estate prices, land prices. Through the comparison between China and Japan, although the economic structure and development trend are similar when the property overheating phenomenon occurs, the economic development background and international background between the two countries are different, and the governments of the two countries have adopted different strategies to deal with the property overheating phenomenon. So in conclusion, although there are some areas in China where real estate is overheating, China's real estate market will not burst the bubble. In order to prevent China's real estate bubble from bursting and its impact on economic development, China should pay attention to the reasons behind it and make targeted policy adjustments, while also drawing on the lessons learned from other countries to promote the healthy and stable development of the real estate economy.

The welfare effects of partial tariff reduction in Japan

When some sectors are more heavily protected than others, will removing lightly protected sectors’ tariffs improve welfare? We argue that this second-best question is highly relevant in Japan, wherein its government made some exceptions to the across-the-board tariff elimination during the Trans-Pacific Partnership negotiations. We have calibrated a specific factor model with multiple import-competing sectors to the 2015 Japanese economy and conducted some counterfactual exercises. Although the partial tariff removal policy in question barely affects Japanese welfare, when it is combined with the agricultural sector tariff removal (across-the-board tariff elimination) the effect on Japanese welfare is made positive. Furthermore, the positive welfare effect more than doubles if it is combined with the removal of the subsidy in the agricultural sector. Both findings indicate the severity of the existing distortion stemming from the Japanese agricultural sector protection as well as the importance of lowering the protection to render the nonagricultural sector tariff removal meritorious.

Foreign trade and domestic networks — A few remarks on the organisation of tributary embassies to China in the Muromachi period

The aim of this article is to rethink the connection between foreign trade and domestic economy in late medieval Japan.The article takes a look at the financial side of the tributary missions to Ming China, investigating how commodities for tribute and for trade were organised. In the 1970s, Sasaki Gin’ya was the first to criticise that research on foreign trade and research on the domestic economy were being conducted separately. He emphasised the importance of complex interdisciplinary research in order to reveal the connection between foreign trade and the domestic economy. Even though this issue had been previously raised, no research had been conducted with the explicit purpose of connecting foreign trade and the domestic economy during the Muromachi period until the past two decades. Contributions that have been made in recent years have aimed at revealing the connections between domestic commercial or religious networks with foreign relations, mainly focusing on the role of Zen monks in diplomacy and trade and on the import and distribution of commodities from China. In Western scholarship, this topic is still under-researched and provides potential for further investigations. Thus, the paper tries to provide an inventory of case studies that help us imagine and understand what kinds of connections existed between domestic networks and foreign trade in medieval Japan that made the procuring of tribute items and commercial products for official trade in China possible. Being aware of networks in medieval society, such as the religious network—and also closely connected to that the commercial network—of Honganji or Tenryūji, can help us connect the scattered and loose information in the sources, in order to explain what contributed to the development of foreign trade. The paper argues that despite the weakening of shogunal power, tributary trade continued because the structure of ship management transformed. Tribute ships became part of commercial ventures backed by the flourishing late medieval Japanese economy, and the increase of capital led to an increase in investors who were ready to participate in trade with China. The way that products were procured shows different patterns that provide good examples to help us understand how local commercial, social, and religious networks were utilised for procuring Japanese commodities.

Charles Yuji Horioka, President of the Japanese Economic Association 2023–2024

Charles Yuji Horioka, President of the Japanese Economic Association 2023–2024

Quantitative Easing in Japan: A Longitudinal Analysis of Monetary Policy Effects and Challenges

This study presents a comprehensive analysis of the effects and challenges of quantitative easing as a monetary policy tool in Japan. Over a period of more than two decades, Japan has implemented quantitative easing to stimulate its economy, resulting in a unique economic landscape characterized by both short-term benefits and long-term uncertainties. By examining historical developments, recent economic trends, and potential risks, this research sheds light on the complex interplay between monetary policy and economic outcomes in Japan. This academic study will provide a comprehensive analysis of the effects and challenges of quantitative easing in Japan, focusing on both short-term benefits and long-term consequences. It will also examine recent economic trends and potential risks to the Japanese economy, offering insights and recommendations for policymakers while acknowledging the uncertainties surrounding the long-term effects of this monetary policy.

The 2023 Japanese Economic Association Nakahara Prize: Recipient—Prof. Toru Kitagawa, Brown University and University College London

The 2023 Japanese Economic Association Nakahara Prize: Recipient—Prof. Toru Kitagawa, Brown University and University College London

The 2023 Japanese Economic Association Award for Young Female Researchers sponsored by the Nippon Life Insurance Company

The 2023 Japanese Economic Association Award for Young Female Researchers sponsored by the Nippon Life Insurance Company

A Study on the Asset Management and Taxation Types of the Rich in Japan

The Japanese economy is facing a new phase from a long-term recession over the past 30 years to an annual economic growth of around 2%. With the recovery of the Japanese economy, not only foreigners but also Japanese capital are returning to Japan. Already, the Japanese Composite Stock Price Index has exceeded 39000 points before the bubble burst. Changes in the yen exchange rate are also inducing the inflow of foreign capital into Japan. In this economic trend, investors are paying attention to the Japanese capital market, and in particular, the wealthy in Japan are focusing on the Japanese domestic market to increase their assets. In particular, the Japanese financial market is attracting attention as a relatively safe asset due to the unstable environment at home and abroad. According to this trend, asset management of the wealthy in Japan is also carried out in various ways. Sometimes there are considerable losses due to asset management failures. That is why it has emerged recently to use various tax savings. Companies and individuals show the same behavior. On the contrary, the government sometimes strengthens monitoring in various ways to prevent a decrease in tax revenue. This phenomenon has recently become common in Japan.

Analysis of Japan’s Experience of Implementing Technological Sovereignty Strategy

The article discusses the purpose of technological sovereignty of each state and its role for economic sustainability. The essence of technological sovereignty in the aspect of various scientific approaches is revealed as well as the boundaries of the sovereignty type under consideration are determined, taking into account production and knowledge-intensive components. Attention is focused on the features of Japan’s transition from a state in isolation to a state interacting with the outside world through technology. The essence of Japan’s approach to ensuring its own economic stability against the background of technological production is revealed. Japan’s place in the world rankings is considered in terms of technology and the number of registered patents for inventions. The indicators of capital investments, industry priorities, labor force in technological industries, the level of exports of goods and services from GDP, the trade balance from GDP, the level of exports of high technologies for 2020–2022 against the background of strengthening Japan’s technological sovereignty are analyzed. The forecast estimates of the technological future of Japan are determined, taking into account the priority in the national economy and the specifics of entering the foreign market with a new technological development. These forward-looking estimates take into account the specifics of the import of raw materials and their intended purpose to ensure technological sovereignty in the foreseeable future. As a result, there is a high probability of having a certain economic algorithm that allows the Japanese economy to restore the desired stability indicators in a short time. Therefore, it is necessary to conduct applied research in order to identify the essence of the economic algorithm used by Japan to strengthen technological sovereignty and ensure economic stability in a short time for subsequent possible adaptation in the Russian economy.

Analysis of the Impact of Quantitative Easing Monetary Policy on the Japanese Economy

Quantitative easing (QE), which was implemented as a measure to address deflation and promote economic growth, is subject to varying interpretations regarding its effectiveness to Japan economy. Supporters attribute the efficacy of quantitative easing (QE) to its role in mitigating a more severe economic decline through the stabilization of asset prices and the maintenance of low interest rates, so preventing future crises. Nevertheless, it is important to acknowledge that divergent viewpoints shed light on the challenges associated with attaining long-term economic expansion. These challenges are often attributed to persistent structural concerns such as a progressively aging population, restrained levels of consumer demand, and cautious levels of company investment. Critics express apprehensions regarding the inadvertent ramifications of extended quantitative easing (QE), encompassing imbalances within financial markets and potential threats to financial stability. This abstract presents a synthesis of several perspectives, highlighting the intricate relationship between quantitative easing (QE) policies and Japan's underlying economic issues. It contributes to a nuanced discussion on the overall effectiveness of QE in the Japanese context.

I Lost My Muslim Identity: A Study of Indonesian Muslim Women Workers in Japan

This research reviews how Japan has become an attractive destination for migrant workers and international tourists in Asia, especially those from Southeast Asian countries such as Vietnam, Thailand, the Philippines and Indonesia. This research aimed to explore how Indonesian female nurses maintain their religious and cultural identity a midst these challenges. The growth of migrant workers from Southeast Asia to Japan began in the 1950s after Japan joined the Colombo Plan, and accelerated following revisions to immigration control laws in the 1980s. The government-to-government (G to G) internship program has also been implemented since 1990, with Indonesian participation since 1993. Even though industry is the backbone of the Japanese economy, the population of productive human resources has experienced a significant decline, which has an impact on industrial productivity. This research used a qualitative research approach based on understanding social realities formed through the context, culture, and subjective meanings held by the informants through their experiences during migration in Japan. To overcome this, the Japanese government has taken steps to open its doors to foreign workers, including from Indonesia. Indonesia is one of the largest suppliers of migrant workers for Japan, with various types of visas such as Technical Intern Training (TITP), Specified Skilled Worker (SSW), and others. However, nursing work is often socially associated with women. In Japan, Indonesian female nurses face complex challenges, including losing their Muslim identity. Revealing uniforms and external factors such as negative stereotypes, discrimination and forced removal of the hijab complicate the situation.

Післявоєнне відновлення України: основні кроки та досвід провідних країн

The Russian attack has brought heavy losses to the Ukrainian economy. At the beginning of January 2023, the government estimated them at more than USD 700 billion. The authors have examined the experience of restoring the German and Japanese economies after 1945. In the West and in Ukraine a new Marshall Plan is being talked about. The Ukrainian plan is USD 750 billion over 10 years, which is a multiple of the funds allocated to the FRG after 1945. It is planned to give money mainly for energy, access to finance, infrastructure and housing construction. Compared to investing in the ruined German economy. There are common features, but the "new Marshall Plan" is a conventional name. The Japanese experience is considered, i.e. cartels destruction and land distribution to small owners. The German experience is useful for Ukraine.

A computable general equilibrium analysis of the EU CBAM for the Japanese economy

The EU plans to introduce a carbon border adjustment mechanism (CBAM) to curb carbon leakage and to protect energy-intensive and trade-exposed (EITE) industries. This move by the EU to introduce CBAMs has raised concerns in Japan that it will harm Japanese industry and the Japanese economy. To address these concerns, this study tries to provide an ex ante and quantitative analysis of the economic and environmental effects of the introduction of the EU CBAM. To capture the effects of the EU CBAM, this study employs a global multiregional, multisector computable general equilibrium model with 18 sectors and 17 regions. The main insights obtained from the analysis are as follows. First, we find that the introduction of the EU CBAM significantly reduces carbon leakage from the EU. Second, the effects of the introduction of CBAMs on the GDP and welfare of each country vary from country to country, but the effects are generally very small. While there is a positive impact on GDP and welfare in Japan, the magnitude of the impact is very small. There will also be a negative impact on Japan’s EITE industries, but the magnitude of this impact is very small and not of great concern.

Has Japan Failed? Examining the role of the BOJ in post-crisis Japan

Abstract: Over the last 3 decades, Japan has suffered from persistent economic malaise which are without precedent in economic history, and as interesting as the circumstances leading to the demise of Japan as a major economic power are, they are but secondary to the mystery of the constant failure of measures to alleviate the situation. The question that this paper will attempt to answer, with the aid of advanced econometric tools is why the expansionary monetary policy measures taken by the Bank of Japan genuinely failed to stimulate the Japanese economy? The hypothesis I would like to outline is that the Bank of Japan DID fail to ameliorate the economic situation in Japan, due to several shortcomings such as a constant misunderstanding of the economic climate, the sudden drop in effective demand due to the emergence of Asian competitors, and the flawed policy of continually supporting insolvent banks.

경제안보 패러다임 하에서 한일간 협력 강화의 중요성 고찰

Purpose: The purpose of this paper is to look back on Korea-Japan economic relations in the wake of the recent improvement in Korea-Japan relations, and to consider the importance and necessity of strengthening cooperation between Korea and Japan in a trade environment where economic security and protectionism are spreading.
 Research design, data, and methodology: This paper first reviews recent studies similar to the scope of this study, and then examines changes in the world economic order and global trade environment due to the spread of the economic security paradigm. Based on this, we analyze the challenges facing Korea and Japan, and then consider why strengthening cooperation between Korea and Japan is important and necessary under the current trade environment where protectionism is rampant. The analysis method uses various international organizations and Korea-Japan trade statistics to analyze the structure and characteristics of Korea-Japan exports and imports, the effects of the Korea-Japan FTA within RCEP, and the ripple effects of the expansion of Korea-Japan cooperation.
 Results: This paper analyzes the relationship between the economic and industrial structures between Korea and Japan and suggests that building a strong cooperative relationship at the present time, as it has in the past, will bring about mutual benefits. In particular, it emphasizes the need for active response through multilateral cooperation on the international stage, such as RCEP and IPEF, and not limited to cooperation between the two countries. Specifically, the Korean and Japanese economies have a fundamental condition in which they cannot help but prioritize the U.S.-led economic bloc when choosing between the U.S.-led economic bloc and the Chinese-led economic bloc. However, as mentioned above, the Korean and Japanese economies are faced with a dilemma in that they have a connection and closeness with the Chinese economy that cannot be easily escaped. If bleeding occurs due to intensified competition between Korean and Japanese companies, there is a high possibility that only China will benefit as it will be able to purchase at low prices. On the contrary, if cooperation between Korean and Japanese companies is strengthened and transactions are carried out with Chinese companies, the Chinese economy is still highly dependent on the Korean and Japanese economies, so negotiations can be advantageously guided in the direction demanded by both Korea and Japan.
 Implications: Our government must recognize that Korea and Japan can continue to generate economic benefits by strengthening cooperation between the two countries, even under the economic security paradigm, considering the similarities in economic and industrial structures, the closeness of the economic development process, and the shared concepts of capitalism and free markets. It should not be overlooked that if trade friction or disputes occur between specific countries among the three countries, this could have a negative impact, so to speak, on large losses, not only to the relevant country but also to the other country. Therefore, strengthening cooperation between Korea and Japan is an essential option in the current situation.