Japan's Persistent Trade Surplus: Policies for Adjustment

Byron Scott Gangnes () and F. Gerard Adams ()

No 199404, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: While part of the recent increase in the Japanese trade surplus can be attributed to the Japanese recession, the surplus has widened despite the appreciation of the yen and enactment of policies to open Japanese markets. We review the trade surplus issue in the light of theories of trade and current account adjustment. We evaluate the potential for exchange appreciation and Japanese fiscal policy to reduce the imbalance, estimating their effects using simulations of the NIRA-LINK model of the US-Japan-world economy. The simulations show that moderate use of macropolicies would not be sufficient to eliminate the trade imbalance.

Keywords: Japanese trade surplus; econometric simulations (search for similar items in EconPapers)
JEL-codes: F32 F47 C53 (search for similar items in EconPapers)
Date: Written

Downloads: (external link)
http://www.economics.hawaii.edu/research/workingpapers/88-98/WP_94-4.pdf

Related works:
Journal Article: Japan's persistent trade surplus: Policies for adjustment (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hai:wpaper:199404

Ordering information: This working paper can be ordered from
http://www.economics ... s/workingpapers.html

Access Statistics for this paper

More papers in Working Papers from University of Hawaii at Manoa, Department of Economics
Contact information at EDIRC.
Series data maintained by Web Technician ().