The "Light and Shadow" of Japanese Economy : Against the backdrop of the growing East-Asian economic zone

Data show that Japanese economy has kept on the recovery track for over a year now. Though this seems to indicate that the Japanese economy has finally gotten out of a long recession, mockingly called by some as "a lost decade," we are still left with some very serious questions: Is there any danger of a steep economic decline? Are the economic prospects, viewed both in mid-term and short-term perspectives, favorable? The author would like to argue that the Japanese economy, while it may be set back in the short term by a temporary economic slowdown, will show a moderate 2-3% growth in the midterm, mainly helped by the rapid growth of the. East Asian economic zone including China. As attested to by the increasing trade between Japan and the East Asia, the Japanese economy, especially its manufacturing sector, has become more and more integrated with that of East Asia since the mid-90's, with the resulting interdependence on each other. However, the shrinking population of Japan, expected to decrease rapidly after 2006, is a serious threat to a sustained long-term economic growth. Increasing productivity by technological innovations is imperative to offset the declining population. Implementing coordinated policies, such as opening Japanese markets more, aggressively luring foreign direct investments and taking active measures to attract foreign tourists, are some of the steps Japan can take in order to keep its economy viable.9KJ00004174418論文Articledepartmental bulletin pape