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U.S. Political Pressure and Economic Liberalization in East Asia

Takatoshi Ito ()

Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: The object of this paper is two-fold. First, the paper evalutes U.S. pressure for economic liberalization in Japan. Second, its implications for economic and political aspects of the East Asian regional future will be discussed. I will argue that there have been three types of the U.S. pressure on Japan: (i) The traditional type with VERs and other export-limiting measures on Japan; (ii) The SII/MOSS -type in that market access of Japan, which improves the Japanese consumers' welfare, is discussed; and (iii) The result-oriented type where unilateral U.S. gains are sought. The pressure from the United States will not turn Japan to the Asian countories for now. Japan still lacks a market to absorb Asian goods or an idea and principle to lead the Asian countries. However, if EC and NAFTA becomes a reality, the Asian bloc may be formed as a reaction to them.

Date: 1992-04
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