Abstract
Prime Minister Nakasone’s blue-ribbon Economic Council recommended that Japan’s record 1985 current account/GNP ratio of 3.7 percent, and the expected more than 4 percent 1986 ratio be reduced to around 1.5 to 2 percent by FY 1992. Subsequently, the Maekawa Commission in both its 1986 and 1987 reports suggested this objective. While this can partially be achieved through the implementation of the domestic policy options to increase demand, and thus imports, other measures such as increased foreign direct investment and foreign aid are also needed. To illustrate the point, the elimination of the 1986 current account surplus of $86 billion alone would have required a 33 percent domestic economic growth rate.
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Notes
Shoichi Akazawa, Chairman of the Japanese External Trade Organization ( JETRO ); Tokyo, March 1986.
Internal documents, Economic Planning Agency ( Tokyo, May 1986 ). The primary sector includes agriculture, forestry, and fisheries; the secondary sector is manufacturing, mining, and construction, while the tertiary sector is comprised of the service industries, government, and utilities.
William L. Brooks and Robert M. Orr, Jr., “Japan’s Foreign Economic Assistance,” Asian Survey (March 1985), pp. 322–340.
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© 1990 Springer Science+Business Media New York
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Higashi, C., Lauter, G.P. (1990). The International Policy Options. In: The Internationalization of the Japanese Economy. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7891-2_8
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DOI: https://doi.org/10.1007/978-94-015-7891-2_8
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