Trade Deficit When the Reagan Administration first

value of the American dollar in international currency �

exchange. When the trade deficit failed to improve signifi- �

cantly in the wake of a devalued dollar, the productivity of�

American industry was cited as the culprit. In late-1988, with�

the trade deficit still stubbornly high, many economists and�

industrialists began to cast the quality of American products�

in the role of malefactor.1 It is quite likely that each of �

these three factors is a major contributor to the country's �

trade deficit problem, and it is likely that other factors are �

The purpose of this research is to examine one of the �

problems implicated in the trade deficit morass. In this exam-�

ination, productivity in the American economy is considered. �

Comparison of American productivity with the productivity �

experiences of other countries are also made. A particular �

emphasis is placed on the Japanese productivity experience.�

. . .
h
h
  trade, monetary factors and product sale prices are among the � �  h
h
  major determinants of export/import levels. Thus, the use of � �  h
h
  the labor productivity measure with value-based outputs intro-� �  h
h
  duces some distortion into the productivity ratio, regardless � �  h
h
  of the objective of the research. For the purposes of this � �  h
h
  research, however, the distortions are not highly significant.�  ìì  Another important aspect of productivity analysis is the � �  h
h
  way in which data are compared. Productivity ratios, however � �  h
h
  output is measured, provide an output measure based on units of � �  h
h
  input. Productivity analysis, however, most often employs pro-� �  h
h
  ductivity indices. A productivity index provides a convenient � �  h
h
  and an accurate means of comparing and evaluating productivity � �  h
h
  changes over time and between economies.4 Relative changes in � �  h
h
  productivity provide a better means of assessing what is �  h
h
  __________�  ìì  4J. R. Norsworthy, and D. H. Malmquist, "Recent Pr
. . .

Some common words found in the essay are:
Book Company, CONCEPTS MEASUREMENT,  h
h
 , Reagan Administration, INDUSTRIAL COUNTRIES, World Economy, Japan United, � , �  h
h
 , � �, � � , Average Annual, Office July, University Press, Japan Labor,  ìì ,  h
h
  , h
h
  , productivity �, productivity � �,  ð, 5 , pro-� �,  ð 9, 9 �3
,
Approximate Word count = 1778
Approximate Pages = 7 (250 words per page)

More Essays on Trade Deficit When the Reagan Administration first