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Can the Japanese Economy Rebound?
Author(s) -
ElAgraa Ali M.
Publication year - 2003
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/1467-9701.00542
Subject(s) - recession , economics , excellence , economic recovery , dual (grammatical number) , world economy , happening , dual economy , economy , market economy , keynesian economics , political science , art , literature , performance art , law , art history
The Japanese economy has begun to show signs of recovery from its deepest post WWII recession. Although it is generally acknowledged that the recovery is not based on solid foundations, there is elation within Japan regarding the prospects for renewed economic growth. Yet little or no attention seems to be paid to what is happening to Japanese technological innovation, the engine that drives growth. The article shows that the impressive technological excellence of the famed Japanese companies is simultaneously accompanied by a decline in overall Japanese technological innovation. This is attributed to the dual nature of the Japanese economy, where super‐strong exporting industries co‐exist with super‐weak domestic sectors, and to Japan's adherence to outdated perceptions and policies. However, the potential for recovery is within reach: galvanise the backward leg of the dual economy and healthy growth would ensue; restore confidence in the healthy leg and things would be better still; add to this a recipe for responsible macroeconomic management and the prospects would be rosier.