Japan's Contribution to the World Economy

This research reviews the development of the Japanese economy over the past 300 years, and assesses the country's contribution to the world economy. This review begins with an historical description of factors affecting Japan's economic growth from the midseventeenth century through the Meiji Restoration in 1868, "which is the point most historians regard as the beginning of the nation's modernization."1 Following this historical background, the development of the Japanese economy is described. The contribution of the Japanese economy to the world economy is then assessed.

Historical Factors Affecting Japanese

Economic Development Upon succession, Japanese emperors select a meaningfully descriptive name, by which they will be known subsequent to their death.2 For periods prior to the twentieth century, Japanese development is typically referred by the names selected by the emperors. In 1603, however, the Shoguns seized power from the emperor.3 The period of Shogun rule is know as the Tokugawa period, and the Shogunate remained in power until 1867, when the last Tokugawa Shogun abdicated.4

The Tokugawa governments opposed the opening of Japan to outsiders or to outside ideas.5 The end of the Tokugawa Shogun governments, however, marked a turningpoint in Japanese development. Emperor Mutsuhito, who became known as Emperor Meiji subsequent to his death, recover