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

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less prone to consume than is the United States. Conventional western economic wisdom holds that the "economic system exists to serve the wants of consumers . . . . Business managers . . . are driven to do consumers' bidding not by benevolence but by the search for profits in a competitive marketplace. To serve their stockholders, they must serve the public by innovating and holding down costs."30 In Japan, however, priority derives to the producer, not to the consumer. Further, profits are not sought primarily for stockholders, but rather to serve "as the wellspring of growth which they see as an integral part of nationbuilding."31 Japanese companies typically pursue strategies designed to create longterm profitability, as opposed to shortterm profitabilitythe typical perspective of most American firms. According to western economic theory, longterm profits should be reflected in equity stock prices. In Japan, however, "managerial decisions are rarely driven by stock prices."32 A second question of some significance concerns how supply differs in Japan and its western counterparts. Significant levels of some resources required by Japan must be acquired through importation. Japan's principal imports (in the order
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United Conventional, World War, Product Comparison, Product Growth, Trade Industry, | |, United Beyond, Initially Meiji, | | |, Meiji Restoration, United Japan, Japan9 Social,  ,   , economic development, japanese economy, gross domestic, period modern, gross domestic product, modern economic, university press, period modern economic, domestic product, industrial policy, modern economic development,
Approximate Word count = 3740
Approximate Pages = 15 (250 words per page)

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