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GTAP Resource #1109

"The Effects of China's Development and Open Policy on the Japanese Economy"
by Matsuya, Mantaro

China has done much to promote its policies of economic openness in recent years, culminating with its entry into the WTO last year. China is expected to be not only a vast market for foreign enterprises, but also a supplier of inexpensive manufacturing products to the world economy.
In contrast, Japan's economy has suffered from a prolonged recession in recent years. Why hasn't it recovered? There are many reasons, but the fundamental problem may be that Japan cannot adapt well to the many new aspects of today's global economy. The two biggest problems that Japan must solve as quickly as possible are deflation and the disposal of its bad loans.
Some people have argued that a main cause of deflation in Japan is the increasing quantity of imports of inexpensive products made in China. Moreover, increasing Chinese products may compete favorably against Japanese products both in Japan and abroad. This trend is one cause of de-industrialization in Japan.
In this paper we examine how the coming Chinese economic expansion will affect the world economy-and especially the Japanese economy-by using CGE model simulations.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Created: Matsuya, M. (5/31/2002)
Updated: Bacou, M. (7/16/2002)
Visits: 1,781
- Asia (East)

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