In the early 1950s “export or die” was a national slogan, which describes one strategy of the govenment to ensure economic growth in Japan.
This essay is dealing about international trade strategies in Japan after the second World War. The major goal of this work is to conceptually discuss and emprically explain how it was possible for Japan to sustain huge trade surpluses.
First of all it is necessary to define what is meant by trade surplus. A trade surplus exists when the balance-of-trade of a country is positive. That means that the extent of the value of merchandise exports has to exceed the value of merchandise imports (Levi: p. 589).
In general a country can achieve a trade surplus if it tries to maximize its exports and to minimize its imports.
The structure of my essay is followed by these two principles. Therefore a first part will deal with the exports of Japan, i.e. with the question how exports can be maximized. I will try to dicuss how exports have been promoted by MITI and what further circumstances led to the significant growth of the export sector.
In a second part I am going to analyse the restrictions on imports. This chapter will include the explanation of tariff and non- tariff barriers as well as a discussion about the closed nature of the Japanese market.
But previous it is necessary to deal with the theoretical concepts. After that I am going to compare these with what happened in the Japanese reality so that I can finally summarize which factors have been the most influential to maintain the surplus of Japanese balance- of- trade.
Table of Contents
I. Introduction
II. Main part
1. Theoretical explanations
2. Export promotion and import restrictions
III. Conclusion
Research Objectives and Key Topics
This essay examines the international trade strategies implemented by Japan following the Second World War, specifically focusing on the mechanisms that allowed the nation to sustain significant trade surpluses over several decades. The research aims to conceptually analyze and empirically validate the government's role in industrial policy, export promotion, and import regulation.
- The influence of "export-led growth" strategies on national economic policy.
- The role of the Ministry of International Trade and Industry (MITI) in industrial development.
- Institutional and non-tariff barriers that limited market access for foreign competitors.
- The impact of bureaucratic structures and government-business relationships, such as the "iron triangle" and "amakaduri."
- Empirical analysis of Japanese trade balance data and historical economic milestones.
Excerpt from the Book
1. Theoretical explanations
Several theories emphasize different items to explain why it was possible for Japan to sustain economic growth and huge surpluses in the balance- of- trade. As I mentioned in the introduction a national slogan of the post- war period in Japan was “export or die”. This phrase is a quotation of the Japanese Prime Minister in those days. It is an expression of the so called “export led growth strategy” and shows that the government was going to focus its economic policy on exports, because they thought that this would be the only way to ensure that Japan will be a rich country. A successful export was seen as the basis of a strong economy.
Export- led growth is”usually characterized as a set of policies to induce growth in export industries” (Turner, p. 19). This statement connects the first theory- as I illustrated earlier- with a second one which focused on the close relationship between the bureaucracy, big business and government.
It is the so called “developmental state perspective” and that theory emphasizes the involvement of the government in general, or more specific the MITI, in the economy of Japan. Special industries were targeted and supported by govenment. The goal was to earn the necessary technological knowhow to ensure economic growth by targeting special industries. This process has to be regulated by the Ministry of International Trade and Industry. The following quotation from an economic journal published by MITI shows that kind of thinking in those day: “Future growth will be sustained by modernization. We must adapt quickly to the everprogressing technology and environment of the world”(Ministry of Foreign Affairs Japan, p. 14).
Summary of Chapters
I. Introduction: This chapter defines the core concepts of trade surplus and outlines the research objective, which is to analyze how Japan achieved and maintained its positive trade balance through state-led economic strategies.
II. Main part: This section provides a theoretical framework for the Japanese economic miracle and subsequently examines the practical tools of industrial policy, including export promotion and protectionist import restrictions.
III. Conclusion: The concluding chapter synthesizes the theoretical and empirical findings, confirming that the developmental state perspective and export-led growth policies were the most influential factors in sustaining Japan's trade dominance.
Keywords
Japan, International Trade, Trade Surplus, MITI, Export-led Growth, Developmental State, Industrial Policy, Protectionism, Non-tariff Barriers, Iron Triangle, Amakaduri, Economic Development, Modernization, Keiretsu, Macroeconomics.
Frequently Asked Questions
What is the core subject of this paper?
The paper explores the international trade strategies adopted by Japan after World War II to achieve and maintain persistent and significant trade surpluses.
What are the primary thematic fields covered?
The paper covers industrial policy, state-led economic management, export promotion techniques, import regulation, and the political economy of Japan's business-government relations.
What is the central research question?
The study asks how it was conceptually and empirically possible for Japan to sustain huge trade surpluses during its post-war economic development phase.
Which scientific methodology is employed?
The author uses a comparative approach, contrasting various theoretical economic perspectives with empirical data, historical policies, and institutional developments in the Japanese economy.
What is the main focus of the analysis?
The main part of the paper analyzes the role of the Ministry of International Trade and Industry (MITI) and the impact of domestic policies such as subsidies, import barriers, and currency management on export success.
Which keywords define this work?
Key terms include Japan's economic development, MITI, export-led growth, the developmental state, trade surpluses, and structural market barriers.
How did the "iron triangle" affect foreign companies?
The iron triangle, consisting of interactions between politicians, bureaucrats, and big business, created systemic barriers for foreign firms as it prioritized domestic industrial policy and national economic interests.
What is "amakaduri" and why is it relevant to trade?
Amakaduri refers to the tradition where retired senior bureaucrats assume high-level positions in companies they formerly regulated; this creates strong links between the government and private sector that can hinder market access for non-domestic competitors.
Did the yen's valuation play a role in Japan's trade surplus?
Yes, the undervaluation of the yen until the mid-1980s provided a crucial cost advantage for Japanese exporters, making it easier for them to compete on the global market.
- Arbeit zitieren
- Diplom Volkswirt; M.A. Jan Henkel (Autor:in), 2004, International trade strategies - Conceptually discuss and empirically explain Japan's ability to persistently huge trade surpluses, München, GRIN Verlag, https://www.grin.com/document/54930
