Political Geography: Japan / Publication Year: within 25 Years / Topic: Economics

1. Japan-China Relations: A Period of Cold Peace?

Author:: June Teufel Dreyer
Publication Date:: 01-2023
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Pacific Forum
Abstract:: In the sole high-level meeting in the reporting period, on the sidelines of the APEC meeting in Bangkok in November, General Secretary/President Xi Jinping and Prime Minister Kishida Fumio essentially talked past each other. At an earlier ASEAN+3 meeting in Phnom Penh, Premier Li Keqiang and Kishida not only talked past each other but pointedly walked past each other. There was no resolution of major issues: the Chinese position is and remains that Taiwan is a core interest of the PRC in which Japan must not interfere. Japan counters that a Chinese invasion would be an emergency for Japan. On the islands known to the Chinese as the Diaoyu and to the Japanese as the Senkaku, Tokyo considers them an integral part of Japan on the basis of history and international law while China says the islands are part of China. On jurisdiction in the East China Sea, Japan says that demarcation should be based on the median line and that China’s efforts at unilateral development of oil and gas resources on its side of the median are illegal. Beijing does not recognize the validity of the median line. Economically, a number of Japanese industries have been decoupling from China out of concern for the integrity of their supply chains and for security reasons while others are planning to expand operations there. Both sides continued their respective defense buildups while accusing the other of military expansionism.
Topic:: Security, Defense Policy, Diplomacy, Economics, Politics, and Bilateral Relations
Political Geography:: Japan, China, and Asia

2. Japan Matters for America/America Matters for Japan (2023)

Author:: East-West Center
Publication Date:: 02-2023
Content Type:: Special Report
Institution:: East-West Center
Abstract:: The 4th edition of Japan Matters for America/America Matters for Japan, part of the Asia Matters for America initiative, maps the trade, investment, employment, business, diplomacy, security, education, tourism, and people-to-people connections between the United States and Japan at the national, state, and local levels. This publication and the AsiaMattersforAmerica.org website are resources for understanding the robust and dynamic US-Indo-Pacific relationship.
Topic:: International Relations, Climate Change, Economics, Education, Politics, Science and Technology, Governance, Population, Public Health, and Travel
Political Geography:: Japan, Asia, North America, and United States of America

3. What Japanese Tourism Amenities are Influenced in Terms of Affecting Inbound Tourist Demand?

Author:: Yoko Konishi and Takashi Saito
Publication Date:: 08-2023
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: Since 2012, the number of inbound tourists to Japan has increased every year, and new records of tourism-related economic indicators are being updated. On the other hand, the sudden inbound boom has led to a concentration of travel destinations, and over-tourism has become a problem. In this paper, we first statistically observe the concentration of tourists by accommodation type for each country of origin. Second, by identifying tourism amenities that contribute to inbound demand, we gain the knowledge necessary to shift demand from facilities with a high concentration of inbound tourists to facilities with lower occupancy. For the analysis, we utilised establishment data from the Online Travel Agency ‘Accommodation Travel Statistics Survey’ and data on tourism resources by region. The results show that the number of rooms, average price, membership of the hotel in a chain, internet availability, room type, number of World Heritage sites, and number of direct flights positively affect inbound demand. In particular, for ryokan (Japanese-style inns) with low occupancy rates and inbound guest ratios, their independence, internet availability, Western-style room availability, number of World Heritage sites, and hot spring facilities are effective in capturing demand.
Topic:: Economics, Tourism, Hospitality, and Travel
Political Geography:: Japan and Asia

4. Japan's "Economic Security" Measures

Author:: Didi Kirsten Tatlow and Afra Herr
Publication Date:: 02-2022
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: Japan and Germany face an acute dilemma. China, a key trading partner for both nations, uses political warfare and economic statecraft to advance its interests. Like Germany, Japan has a strong SME economy and auto industry, and has dependencies on China. Yet Japan faces more risk due to its geographical proximity to China and territorial disputes. As global tensions grow, Japan is responding robustly by building economic security. Germany, together with the EU and other like-minded partners, should do the same.
Topic:: Security, Economics, Politics, and Trade
Political Geography:: Japan, China, Asia, and Germany

5. Japan and the Regional Comprehensive Economic Partnership (RCEP)

Author:: Mie Oba
Publication Date:: 10-2022
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: This paper aims to clarify the role of Japan in the process leading up to the establishment of the Regional Comprehensive Economic Partnership (RCEP). While emphasising that respect for the centrality of the Association of Southeast Asian Nations (ASEAN) was a principle of RCEP, Japan played a leading role in the process of RCEP negotiations. For Japan, RCEP is one of the fruits of its strategy in East Asia/Asia-Pacific that began the mid-1990s to protect and increase the interests and advantages of Japanese business and retain Japan’s political leverage in the region. When substantial negotiations for RCEP began in 2013, its importance for Japan was secondary to other free trade agreements (FTAs) including the Trans-Pacific Partnership, China–Japan–Korea FTA, and Japan–European Union FTA. However, the Government of Japan and the business community had set a lot of economic and strategic goals in promoting RCEP. After the withdrawal of the United States (US) from the Trans-Pacific Partnership, RCEP was seen as an essential framework for establishing a rules-based regional order in the Indo-Pacific region. Although it was after India’s withdrawal from the RCEP negotiations, Japan further emphasised the importance of RCEP as the measure to sustain and foster the rule-based regional order and simultaneously pursued the conclusion of negotiations and the establishment of high-level rules, achieving some success. Ultimately, the havoc brought about by the coronavirus disease (COVID-19) pandemic and the sense of crisis in the traditional liberal international order caused by the intensifying strategic competition between the US and China, drove the conclusion of RCEP. RCEP will be increasingly important for economic order in Japan and Asia in the coming years. Ironically, as the strategic competition between the US and China escalates and leads to a surge in protectionism, the economic and strategic importance of RCEP – an FTA that incorporates China – is becoming more significant as a measure to counter unilateralism and protectionism. In addition, RCEP needs elements that address globalisation’s adverse effects and pitfalls, in areas such as the environment, labour rights, and a reduction in the disparity between the rich and poor.
Topic:: Development, Economics, International Trade and Finance, and Regional Cooperation
Political Geography:: Japan and Asia

6. EU – Japan Economic Partnership Agreement: Strengthening economic ties as a way out of recession

Author:: Jana Záhořová
Publication Date:: 11-2021
Content Type:: Special Report
Institution:: Europeum Institute for European Policy
Abstract:: Today, Japan remains an important international trading partner of the EU. Following China, Japan is the EU’s second-most important trading partner in Asia. According to experts from the European Commission, the Economic Research Institute for ASEAN and East Asia and the University of Pavia, the EU-Japan EPA is a success because it is a great example of a higher degree of economic integration that can put pressure on other countries to feel obliged to adhere to free trade rules rather than protectionism.
Topic:: Economics, Treaties and Agreements, European Union, Partnerships, and Trade
Political Geography:: Japan, Europe, and Asia

7. Medical Security, Covid Challenge and the U.S. - Japan Alliance

Author:: Kent Calder
Publication Date:: 12-2021
Content Type:: Journal Article
Journal:: Fletcher Security Review
Institution:: The Fletcher School, Tufts University
Abstract:: National security has been classically conceived as a narrowly military and state-centric concept, especially in the Western industrial world. Security is, generations of strategists and statesmen have told us, a matter of defending core nation-state values and interests by force of arms. Two world wars across the first half of the twentieth century, and a long nuclear confrontation to follow, engrained this military and state-centric conception deeply into global consciousness and public discourse. The tragic COVID-19 crisis now confronting us suggests that this logic may be flawed, or at least oversimplified. Over 2.3 million people worldwide died in the first year of this global pandemic, with well over 100 million infected. These figures are likely understated.44 Untold millions of people continue to suffer from “long COVID” maladies around the world.
Topic:: Economics, Health, National Security, COVID-19, and Health Crisis
Political Geography:: Japan, Asia, North America, and United States of America

8. The Big Squeeze: Japanese Supply Chains and Great Power Competition

Author:: Mireya Solis
Publication Date:: 07-2021
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Japan led, and was transformed, by the global supply chain revolution. Facing growing protectionism in industrialized markets and reeling from sharp yen appreciation in the aftermath of the 1985 Plaza Accord, Japanese firms responded with a drastic increase in their overseas investment activities. In so doing, many of these companies spearheaded the movement towards the fragmentation of production across national boundaries that sought efficiency gains by pooling the competitive advantages of different locations. Japan’s experience with the first supply chain revolution was transformative. It altered its export-led model with important implications for its foreign policy. Japanese investments in the United States helped abate trade frictions; integrated production was at the heart of the project to rebuild relations with China, and Japan’s lead as foreign investor in Southeast Asia has been a pillar of its blueprint for regional integration. The strains in the rules-based international trade order, however, have raised questions about the ability of global supply chains to continue to operate effectively. The U.S.-China geopolitical rivalry has manifested in a damaging trade war, and moves to restrict tech flows are creating decoupling pressures. The COVID-19 pandemic has exacerbated these trends with lockdowns that disrupt supply chains while export protectionism and calls to renationalize production are on the rise. The intensified risk environment could lead to a second supply chain revolution with a greater emphasis on redundancy and diversification and bifurcation of productive chains. How will Japan respond to the challenges to international production, a central engine of its economic prosperity, and with what consequences for its relations with major powers? To provide greater clarity on this overarching question, this paper is organized as follows. Section 1 describes the central role of Japanese firms in the emergence and deepening of regional production networks. Although Japan’s overall share of intra-regional trade has decreased in the 21st century—in tandem with China’s rise as regional hub- Japanese firms have retained their central role in GVCs (Global Value Chains) through their advanced manufacturing capabilities. Section 2 offers a glimpse of past and recent supply chain shocks—China’s embargo of rare earth metals, the Great East Japan Earthquake in Tohoku, and the Japan-Korea export control dispute—to illustrate both sources of vulnerability and resilience of Japanese GVCs. Section 3 assesses the systemic shift brought about by revived great power competition, and identifies some early adjustment responses from Japanese firms to a new normal of heightened geopolitical tension.
Topic:: Economics, Strategic Competition, and Supply Chains
Political Geography:: Japan, China, and Asia

9. What might have been: Globalization on the medal stand at the Tokyo Olympics

Author:: Soyoung Han and Marcus Noland
Publication Date:: 04-2020
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The Summer Olympic Games are the most globalized sporting event on earth. Until now, the Summer Games had been postponed only three times—in 1916, 1940, and 1944—all because of world wars. So, the announcement that in response to the COVID-19 pandemic, the 2020 Tokyo Games would be postponed by a year is significant, implicit testimony to the destructiveness of the pandemic. The Tokyo Games were expected to continue the evolution of the Games away from the aristocratic European milieu where the modern Olympic movement began. As poverty has declined and incomes across the global economy have converged, participation in the Games has broadened and the pattern of medaling has become more pluralistic, particularly in sports with low barriers to entry in terms of facilities and equipment. This Policy Brief presents forecasts of medal counts at the 2020 Tokyo Summer Games had they had gone on as scheduled, setting aside possible complications arising from the coronavirus pandemic. The forecasts are not just a depiction of what might have been. They establish a benchmark that can be used when the Games are eventually held, to examine the impact of the uneven incidence of the pandemic globally.
Topic:: Economics, Globalization, Sports, and Olympics
Political Geography:: Japan, Asia, and Global Focus

10. Japan and the Visegrad 4: The Unsensational Strategic Partners

Author:: Rudolf Furst
Publication Date:: 05-2020
Content Type:: Working Paper
Institution:: Institute of International Relations Prague
Abstract:: The Euro-Japanese rapprochement stimulates the Japanese interest in the new EU member states, which are then matched with Japanese investments and Japan’s global trade strategy. The V4 countries benefit from their geographical position, existing infrastructure and political stability, industrial tradition, and low labour costs, emphasizes Rudolf Fürst.
Topic:: Economics, Bilateral Relations, Labor Issues, European Union, Political stability, and Industry
Political Geography:: Japan, Europe, and Asia

11. Joint U.S.-Korea Academic Studies 2020

Author:: Gilbert Rozman, Mark Tokola, Gilbert Rozman, Dmitri V. Trenin, Yuki Tatsumi, Kathryn Botto, Rush Doshi, Scott W. Harold, See-Won Byun, Cheol Hee Park, Brad Glosserman, Charles W. Boustany Jr., Matthew Goodman, Wonho Yeon, and Kitti Prasirtsuk
Publication Date:: 06-2020
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The experts in this volume have thoughtfully addressed themes that are pervasive throughout Asia and are timely for the U.S.-Korea alliance. With the future of Northeast Asia in flux, political leaders are hoping to transform their respective visions into the path forward for the region. Authors in the first section analyze the frameworks of U.S. President Donald Trump, Chinese President Xi Jinping, Russian President Vladimir Putin, Japanese Prime Minister Abe Shinzo, and South Korean President Moon Jae-in to discern the currents underlying geopolitical developments in the region. The second section examines the role of national identity in key bilateral Indo-Pacific relationships where geopolitical fault lines have become clearer. Chapters in this section cover the India-China, U.S.-China, South Korea-China, and South Korea-Japan dyads. The final section provides insights into how several of China’s neighbors and the United States are responding to its economic rise, which, of course, are also guided by strategic concerns. Considering how COVID-19 has exacerbated the rivalry between Washington and Beijing as well as the influence this relationship carries in shaping the future of the region, the contributions here are particularly relevant and timely.
Topic:: International Relations, Security, Economics, and Domestic Policy
Political Geography:: Japan, China, Asia, South Korea, North America, and United States of America

12. Quantifying the Demand, Supply, and Welfare Effects of Natural Disasters Using Monthly Trade Data

Author:: Gabriel Felbermayr, Jasmin Katrin Gröschl, and Benedikt Heid
Publication Date:: 12-2020
Content Type:: Working Paper
Institution:: Kiel Institute for the World Economy (IfW)
Abstract:: We estimate the short-run trade effects of natural disasters using monthly trade data and data on the physical intensity of earthquakes and storms. We find large negative effects for heavily indebted poor, least developed or landlocked developing countries but only small effects for other economies. We use our estimates to identify key parameters of a dynamic quantitative trade model to disentangle the effects of disasters on supply, demand, and welfare and their spillovers on third countries via trade linkages. We apply our model to quantify the effects of the 1992 earthquake in Nicaragua, a small, heavily indebted poor country, and the 2011 Tohoku earthquake in Japan, a large developed economy. We find that spillovers are negligible if the country affected by a disaster is small but sizable for large economies. Similar disasters have heterogeneous effects on countries’ demand and supply, highlighting the importance of event-specific policies in the aftermath of disasters.
Topic:: Development, Economics, Natural Disasters, Economic Growth, and Trade
Political Geography:: Japan and Nicaragua

13. The Cornerstone and the Linchpin: Securing America’s Northeast Asian Alliances

Author:: Patrick M. Cronin
Publication Date:: 10-2019
Content Type:: Special Report
Institution:: Hudson Institute
Abstract:: During an era in which strategic gravity is shifting to Asia, the United States cannot be careless in tending to its alliances with Japan and South Korea (the Republic of Korea, or ROK). The three countries face persistent threats from North Korea and from China’s semi-transparent bid for regional hegemony. Meanwhile, rocky relations between Tokyo and Seoul are jeopardizing vital U.S. interests in the Indo-Pacific. The latest disagreement between America’s premier allies raises new questions about alliance strategy, commitment, and burden-sharing. These fissures have become exacerbated as the U.S. pressures allies to increase their contributions to regional security and reciprocal trade. [...] This report seeks to explain why the U.S.-Japan and U.S.-ROK alliance are still a vital means of achieving overlapping strategic interests. At the same time, it also argues that keeping these alliances fit for purpose requires radical change rather than business as usual. Both a rapidly changing security environment and growing intra-alliance squabbling pose dangers that require U.S. leadership. This report concludes with specific ideas for advancing bilateral and trilateral cooperation in the coming months and years, without trying to achieve too much too quickly.
Topic:: International Relations, Foreign Policy, Economics, International Security, and Alliance
Political Geography:: Japan, Asia, South Korea, North America, and United States of America

14. Words and Their Silos: Commercial, Governmental, and Academic Support for Japanese Literature and Writing Overseas

Author:: Anne McKnight
Publication Date:: 08-2019
Content Type:: Working Paper
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: This paper connects in a preliminary way realms of analysis and data regarding practices of disseminating Japanese literature and writing translated in English and Association of Southeast Asian Nations (ASEAN)–located languages since about 2000. The assumption is that translations from different languages have been consistently silo’ed – separated and allowed to accumulate and dynamically evolve. I outline a history of the de-linking of ‘writing’ from ‘literature’ as well as language study itself, which has led to both a withdrawal and an explosion of funding since about 1990. I note secondary effects of re-concentration in English and European languages, a flourishing of small-press activity and writing on food (Jonathan Gold) and self-help (Kondo Marie), and a focus on the ‘authorised translator’ model in both English and ASEAN languages following a tendency to standardise copyright law. Second, I introduce some histories and distinctive practices that could model support for translators. Last, I discuss economies of both money and prestige in different practices, and offer some suggestions based on interviews with an eye to supporting translators so that all languages have a hand in creative practice, and English-language–based translators can collaborate with translators in other languages.
Topic:: Economics, Culture, Literature, and Language
Political Geography:: Japan and Asia

15. WTO'ing a Resolution to the China Subsidy Problem

Author:: Chad P. Bown and Jennifer A. Hillman
Publication Date:: 10-2019
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: The United States, the European Union, and Japan have begun a trilateral process to confront the Chinese economic model, including its use of industrial subsidies and deployment of state-owned enterprises. This paper seeks to identify the main areas of tension and to assess the legal-economic challenges to constructing new rules to address the underlying conflict. It first provides a brief history of subsidy disciplines in the General Agreement on Tariffs and Trade and the World Trade Organization (WTO) predating any concerns introduced by China. It then describes contemporary economic problems with China’s approach to subsidies, their impact, and the apparent ineffectiveness of the WTO’s Agreement on Subsidies and Countervailing Measures to address them. Finally, it calls for increased efforts to measure and pinpoint the source of the problems—in a manner analogous to how the Organization for Economic Cooperation and Development took on agricultural subsidies in the 1980s—before providing a legal-economic assessment of proposals for reforms to notifications, evidence, remedies, enforcement, and the definition of a subsidy.
Topic:: Economics, World Trade Organization, Tariffs, and Trade
Political Geography:: Japan, Europe, Asia, North America, United States of America, and European Union

16. Fiscal Policy Options for Japan

Author:: Olivier Blanchard and Takashi Tashiro
Publication Date:: 05-2019
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: For many years, the Japanese government has promised an eventual return to primary budget surpluses, but it has not delivered on these promises. Its latest goal is to return to primary balance by 2025. Blanchard and Tashiro, however, argue that, in the current economic environment in Japan, primary deficits may be needed for a long time, because they may be the best tool to sustain demand and output, alleviate the burden on monetary policy, and increase future output. What primary deficits are used for, however, is equally important, and the Japanese government should put them to better use. The authors recommend that, given Japan’s aging population, the government should spend on measures aimed at increasing fertility—and by implication population and output growth—which are likely to more than pay for themselves.
Topic:: Economics, Government, Budget, Fiscal Policy, and Deficit
Political Geography:: Japan and Asia

17. Finding an Advocate: The Role of the Private Sector in Korea-Japan Relations

Author:: Jiwon Nam and Kristin Vekasi
Publication Date:: 06-2019
Content Type:: Working Paper
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Tensions between South Korea and Japan are frustratingly persistent. Despite the shared interests of both countries, such as economic development in Southeast Asia, and keeping a robust alliance with the United States, South Korea and Japan maintain a bellicose relationship because of unresolved historical misunderstandings and territorial disputes. Inconsistent diplomatic policies and lack of strong leaders have made it difficult to prevent unnecessary hostility between South Korea and Japan. Fear of losing support has prevented politicians from pursuing friendly policies towards each other. Businesspeople, too, have been reluctant to pursue friendly policies towards each other, because of preconceived risks of being targeted for backlash. An examination of economic data shows these risks are minimal, and political tensions do not affect business or consumer behavior. Current efforts from both Korean and Japanese business organizations to improve cooperation include student exchange programs, recruitment processes, and public diplomacy. We urge the business community to advocate more to improve bilateral relations. Economic relations alone are insufficient to handle the task of improving a difficult relationship; there is also a need for leadership. In South Korea-Japan relations, the business community should step in and provide that role.
Topic:: Economics, Bilateral Relations, Business, and Private Sector
Political Geography:: Japan, Asia, South Korea, North America, Korea, and United States of America

18. The Economic Impact of Huawei in Japan

Author:: Oxford Economics
Publication Date:: 11-2019
Content Type:: Commentary and Analysis
Institution:: Oxford Economics
Abstract:: Since opening its first office in Japan in 2005, Huawei has played a significant role in developing Japan's digital infrastructure. Working collaboratively with local manufacturers and innovators, the company has developed a suite of innovations that tailor technology solutions to the Japanese context. Huawei also delivers long-term benefits to Japan's productive potential, through its investment in Japanese research and development and the training it provides to its employees and the wider Japanese workforce. This report, commissioned by Huawei, seeks to quantify the company's "total economic impact" across Japan, through its direct operations and the "knock-on effects" it creates in Japanese supply chains and the wider economy. We find that in 2018, Huawei sustained a JPY 766 billion contribution to Japan's GDP, supported 46,400 Japanese jobs and generated JPY 208 billion in tax revenues.
Topic:: Economics, Tax Systems, Innovation, and Private Sector
Political Geography:: Japan and Asia

19. Redefining U.S.-Japan Trade Relations Under Trump

Author:: Shihoko Goto
Publication Date:: 07-2019
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: The Trump administration has had no qualms about going against conventional U.S. policy norms and long-established rules of engagement. Thinking outside of the box has not been without its merits; it has certainly led to much-needed reassessment of practices that could benefit from change. The greatest risk of such change, however, is when policy shifts are sudden, unexpected, and unexplained, especially with long-established partner nations. In the two years since President Donald Trump took office, the single biggest challenge for key U.S. allies has been to scramble to adapt to those drastic changes. That, in turn, has led them to reexamine and even alter their own longer-term strategies. For Japan, the pressure to adapt to such changes has been particularly intense, given its continued dependence on the United States for security in an increasingly unstable region on the one hand, and its reliance on robust trade relations with the world’s largest economy on the other. At the midway point of the Trump administration, Japan has actually emerged stronger over the past two years, at least on the trade front. Against the odds and defying expectations, it has succeeded in strengthening its position as a stabilizing force amid ongoing uncertainties in global trade rules. Yet, its success so far does not mean that the latter half of Trump’s tenure will be smooth sailing for Tokyo. In fact, Prime Minister Abe Shinzo’s balancing act of managing robust relations with the United States while ensuring Japan’s own economic interests may prove to be more difficult. The challenge is to further the gains it has made as an economic stabilizer, even as that outcome will redefine its broader role as a champion of the liberal international order, which has been put on shakier ground.
Topic:: Economics, Bilateral Relations, Trade, and Donald Trump
Political Geography:: Japan, Asia, and United States of America

20. Advancing the Regional Trade Order in East Asia with a Less Engaged United States

Author:: Korea Economic Institute of America
Publication Date:: 08-2018
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: In the aftermath of Donald Trump’s election and immediate pullout from the TPP, a scramble ensued over how to proceed with constructing a regional trade order centered on East Asia. For China this brought closer scrutiny of its pursuit of the Belt and Road Initiative (BRI). In the case of Japan, questions followed about what to do with the residue of TPP. Others, notably countries in Southeast Asia, were left contemplating the balance between eastern exclusive regionalism and the western presence in regionalism. In the background were efforts in South Asia aimed at advancing economic integration with East Asia. A kind of free-for-all was in progress without the moorings that had been lost after the paradigm of competition between a U.S.-led TPP and a China hub-and-spokes BRI no longer was guiding the strategic calculations of Asian countries. Then, in March 2018 came Trump’s disruptive tariffs, threatening to set a trade war in motion. Four chapters explore the challenge of advancing a regional trade order in East Asia in the new circumstances of 2017-18. Tu Xinquan in Chapter 10 questions whether BRI is a path toward regionalism, delving deeply into the Chinese strategy for BRI. T.J. Pempel follows in Chapter 11 by exploring Japan’s thinking about TPP and the process of refocusing on TPP- 11 following the U.S. withdrawal. Chapter 12 by Sanchita Basu Das offers a hopeful ASEAN perspective on economic regionalism. Finally, in Chapter 13 Pradumna Bickram Rana traces thinking about re-energizing economic integration between South Asia and East Asia. With no finality to the RCEP talks and the recently concluded TPP-11 pact still taking shape and Trump’s “America First” trade policy casting a dark shadow, we aim to capture signs of a new trade order at a time of flux.
Topic:: Economics, Regional Integration, and Trade
Political Geography:: Japan, China, East Asia, Asia, and Korea

21. Korea's Economic Relations with Japan

Author:: Kim Gyu-Pan
Publication Date:: 07-2017
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Korea's economic relations with Japan, which were re-established as a result of the diplomatic normalization between the two countries in 1965, have transformed from dependent to interdependent. The extraordinary economic growth that Korea accomplished during the post-war period was largely due to intermediate goods imported from Japan, and technical cooperation and joint ventures with Japanese enterprises. However, in the 21st century, the dependence of Korean firms on Japanese technology has somewhat declined as global enterprises have appeared in Korea. In contrast to the post-war economic boom, Japanese companies now prefer to cooperate with their Korean counterparts, resulting in joint business ventures between Korean and Japanese firms being continuously developed. This reversal in the economic ties between Korea and Japan can be attributed to several reasons including: the rise of China; Japan's two lost decades; and Korea's push for domestic structural reform as well as economic globalization after the Asian Currency Crisis of 1997. Nonetheless, the issue of Korea's trade imbalance with Japan, which was established during the post-war period, still remains thereby serving as a serious impediment to FTA negotiations between Korea and Japan as well as Korea's TPP negotiations.
Topic:: Economics, History, Bilateral Relations, and Trade
Political Geography:: Japan, Asia, South Korea, and Korea

22. Present Conditions of North Korean Industry and Possible Reconstruction Plans

Author:: Lim Soo-ho and Hong Seok-ki
Publication Date:: 07-2017
Content Type:: Special Report
Institution:: Korea Economic Institute of America (KEI)
Abstract:: Since the collapse of industry during the 'Arduous March' (1995-1997), Pyongyang has continuously launched reconstruction plans but has failed to see a rebound. The key is to restore industrial linkages; however, the DPRK allocated a majority of state investment to the defense industry under the 'Military First Economic Policy.' As long as the 'strategic sector' retains priority, a sound outcome seems to be out of reach. In reality, North Korea's comparative advantage lies on labor-intensive business, with abundant labor forces at a low cost. After unification, such industries will have bright prospects with technology and capital not only from South Korea, but also from China and Japan. The economic integration scenario of the two Koreas -- whether radical or gradual -- will decide industrial policies for the upper half of the peninsula in the post-unification era.
Topic:: Economics, Science and Technology, History, Reconstruction, and Industry
Political Geography:: Japan, China, Asia, South Korea, North Korea, and Korea

23. The Framework for a U.S.-Japan Free Trade Agreement

Author:: Derek M. Scissors and Dan Blumenthal
Publication Date:: 09-2017
Content Type:: Working Paper
Institution:: Project 2049 Institute
Abstract:: The United States and Japan can create a bilateral free trade and investment agreement that both sides will sign and ratify. While the Trans-Pacific Partnership (TPP) initially appeared to qualify as the new approach the U.S., Japan, and East Asia needed. It failed to sufficiently promote free markets and address concerns to generate enough support from traditional protectionist opponents in the United States. Nonetheless, the TPP did clarify the value of a directly relatied initiative: a U.S.-Japan bilateral agreement. This monograph serves to provide a framework for a U.S.-Japan Free Trade Agreement (FTA) and offers an outline for what such an agreement should look like in order to work both economically and in terms of domestic politics.
Topic:: Economics, Treaties and Agreements, Domestic Politics, Investment, and Free Trade
Political Geography:: Japan, Asia, North America, and United States of America

24. The Rules of Reproduction of Capitalism: A Historicist Critique

Author:: Samuel Knafo and Benno Teschke
Publication Date:: 01-2017
Content Type:: Working Paper
Institution:: Centre for Global Political Economy, University of Sussex
Abstract:: Marxism has often been associated with two different legacies. The first rests on a strong exposition and critique of the logic of capitalism, which has been grounded in a systematic analysis of the laws of motion of capitalism as a system. The second legacy refers to a strong historicist perspective grounded in a conception of social relations and an emphasis on the centrality of power and social conflict to analyse history. In this article, we challenge the prominence of structural accounts of capitalism, which are inspired by the first of these legacies and argue for the need to radicalize the agent-centered and historicist contribution of Marx that derive from the second. Our claim is that Marxists operating within a structural framework systematically fall into economistic readings of capitalism, which hinder the practice of historicisation Marxism was supposed to buttress. To make this argument, we show how this tension between these legacies has played out within Political Marxism (PM). We argue that both orientations – encapsulated in the simultaneous programmatic emphasis on historically specific social conflicts and determinate rules of reproduction that are logically deduced from definitive social property relations – co-existed already uneasily in Robert Brenner’s original contributions to the Transition Debate. We proceed by critically exploring the increasing reliance on a structural conception of the ‘rules of reproduction’ in later works of PM’s early proponents and by some of its contemporary followers. This, we argue, has led to the reification of capitalism and a growing divide between theoretical premises and historical explanation. In response, we seek to return to the early historicist innovation of PM and to recover and develop its commitment to a more contextualised and open-ended interpretation of social conflicts. Through this internal critique and re-formulation of PM, we wish to open a broader debate within Marxism on the need for a more agency-based account of capitalism, which builds more explicitly on the concept of social relations.
Topic:: Economics, Socialism/Marxism, and Capitalism
Political Geography:: United States, Japan, Eastern Europe, Germany, and Western Europe

25. ASEAN as an FDI Attractor: How Do Multinationals Look at ASEAN?

Author:: Masahito Ambashi
Publication Date:: 01-2017
Content Type:: Policy Brief
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: This policy brief presents an overview of the ASEAN economy in terms of its economic relationship with multinationals, particularly Japanese companies, that have long invested in this region. ASEAN has been an attractor of foreign direct investment (FDI). Business interest in ASEAN has increased again recently due to the (i) relatively low wage of ASEAN compared to China, (ii) establishment of the ASEAN Economic Community (AEC), (iii) economic partnership network with a core of ASEAN countries, (iv) large-scale market covered by ASEAN, and (v) rise of CLMV countries (Cambodia, Lao PDR, Myanmar, and Viet Nam). In these trends, ASEAN has established a reciprocal economic relationship with other countries and regions. To develop its economy, ASEAN member states are expected to further advance the AEC at a high level. Hence, ASEAN must address challenges such as deepening further economic integration and narrowing development gaps in the region. Most importantly, ASEAN still needs to increase the attractiveness of its 'whole region' as an essential and integral part of global value chains to draw further FDI.
Topic:: Economics, International Political Economy, International Trade and Finance, and Global Political Economy
Political Geography:: Japan and Southeast Asia

26. S-Japan Relations and Southeast Asia: Meeting Regional Demands

Author:: Saul P. Limaye and Tsutomu Kikuchi
Publication Date:: 01-2016
Content Type:: Working Paper
Institution:: East-West Center
Abstract:: Until recently, Southeast Asia had not been a region of sustained focus for the US-Japan relationship. But the situation is changing. The international relations of the Asia-Pacific is becoming more "multipolarized." This requires the US and Japan to think about the future of the region beyond the issue of US-China relations, which has preoccupied past discussions. A number of nations and institutions in the Asia-Pacific region will substantially affect the region's future. Southeast Asian nations and the Association of Southeast Asian Nations (ASEAN) are among them. A new era of more coordinated, sustained, and combined commercial and security involvement by the US and Japan in Southeast Asia may be at hand. In light of these changes, the East-West Center in Washington (EWCW), in collaboration with the Japan Institute of International Affairs (JIIA), and through the support of the Sasakawa Peace Foundation (SPF), initiated a dialogue with Southeast Asians about their perspectives on how the US-Japan relationship and alliance could or should approach cooperation with the region.
Topic:: Security, Economics, Markets, and Peacekeeping
Political Geography:: United States, Japan, China, and Asia-Pacific

27. Japanese Investment in the United States: Superior Performance, Increasing Integration

Author:: Theodore H. Moran and Lindsay Oldenski
Publication Date:: 02-2015
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: Japan is reemerging as the most important source of foreign direct investment (FDI) in the United States. In 2013 Japanese firms were the largest source of new inflows of FDI into the United States for the first time since 1992, injecting almost $45 billion of fresh investment into the US economy in that year alone. Moran and Oldenski show how Japanese investment in the United States differs from that of other countries along several dimensions. These differences not only make FDI by Japanese firms especially valuable but point to some important policy goals for attracting it. Although the automotive sector is the single largest industry for Japanese investment in the United States, the focus should not be on competing to attract the auto industry in particular nor should any active industrial policy of "picking winners" be pursued. Japanese investment is unique because of its research and development intensity, manifested across a number of industries in which Japanese multinationals invest other than automobiles. US policy should focus on reinforcing and expanding the factors that attract high-performing firms and high-value production stages to the United States, regardless of industry.
Topic:: Development, Economics, Foreign Direct Investment, and United States
Political Geography:: Japan

28. Evaluating Asset-Market Effects of Unconventional Monetary Policy: A Cross-Country Comparison

Author:: John Rogers, Chiara Scotti, and Jonathan H. Wright
Publication Date:: 03-2014
Content Type:: Commentary and Analysis
Institution:: Board of Governors of the Federal Reserve System
Abstract:: This paper examines the effects of unconventional monetary policy by the Federal Reserve, Bank of England, European Central Bank and Bank of Japan on bond yields, stock prices and exchange rates. We use common methodologies for the four central banks, with daily and intradaily asset price data. We emphasize the use of intradaily data to identify the causal effect of monetary policy surprises. We find that these policies are effective in easing financial conditions when policy rates are stuck at the zero lower bound, apparently largely by reducing term premia.
Topic:: Economics, Monetary Policy, Exchange Rate Policy, and Banking
Political Geography:: Japan, Europe, Asia, and England

29. Sino-Japanese relations: power, interdependence, and domestic politics

Author:: Hiroki Takeuchi
Publication Date:: 01-2014
Content Type:: Journal Article
Journal:: International Relations of the Asia-Pacific
Institution:: Japan Association of International Relations
Abstract:: China and Japan have been deepening economic interdependence over the last two decades, while China has recently shown territorial ambitions and initiated disputes with Japan. This runs contrary to the commercial liberal literature that argues that trade promotes peace. On the other hand, the realist theory also does not fully explain Sino-Japanese relations because Sino-Japanese relations are not always in conï¬‚ict. The rise of China and the relative decline of Japan might explain increasing tensions in the rivalry relationship, but what drives Chinese leaders to initiate disputes? I address the importance of domestic politics to examine Sino-Japanese disputes. I argue that the recent deterioration of the bilateral relationship could be explained by the power struggle in the Chinese leadership. To support the logic of this argument, I use a game-theoretic model, which accounts for how the type of Chinese leadership inï¬‚uences foreign policy outcomes in Sino-Japanese relations.
Topic:: International Relations and Economics
Political Geography:: Japan and China

30. Democracy and diversionary incentives in Japan–South Korea disputes

Author:: Kan Kimura, Koji Kagotani, and Jeffrey R. Weber
Publication Date:: 01-2014
Content Type:: Journal Article
Journal:: International Relations of the Asia-Pacific
Institution:: Japan Association of International Relations
Abstract:: Since its democratization, South Korea's foreign relations with Japan have become increasingly volatile. We investigate the diversionary incentives behind these ï¬‚uctuations in South Korean foreign policy during 1988–2011. We show evidence that, similar to mature democracies, economic turmoil is driving Korean leaders to divert the public attention toward low-intensity disputes against Japan. However, unlike mature democracies, our results reveal that public approval ratings and national elections do not encourage leaders to engage in the diversionary behavior due to South Korean domestic political institutional settings and party system. These ï¬ndings highlight challenges to foreign policy making in a new democracy, an issue that has not been considered in detail in the literature. We conclude that although historical antagonism and US commitment to East Asia may affect the Japan–South Korea relationship, economic diversionary incentives signiï¬cantly determine the ï¬‚uctuations in Japan–South Korea disputes
Topic:: Foreign Policy and Economics
Political Geography:: Japan and South Korea

31. Japan's New Security Policy: Breaking Away from the Post–War Regime?

Author:: Bart Gaens
Publication Date:: 02-2014
Content Type:: Policy Brief
Institution:: Finnish Institute of International Affairs
Abstract:: China is challenging the regional balance of power in East Asia through a military buildup and an increasingly assertive foreign policy. The US is forced to find the right balance between cooperating with China while benefiting from its economic rise, and countering China's regional reach by carrying out its self-declared "pivot" to Asia in spite of domestic and budgetary constraints. With just over one year in office, Japan's Prime Minister Shinzo Abe has received wide domestic support for his ambitious plans to revive Japan's economy through his threefold policy of Abenomics. At the same time, however, he has implemented a number of significant policies in the defence and security sphere. In response to China's military rise, the Abe administration increased and recalibrated the defence budget. Furthermore, in order to reinforce the alliance with the US, the government approved the creation of a US-style National Security Council, passed a Secrecy Bill, and aims to reverse Japan's self-imposed ban on exercising the right to collective self-defence. Under the banner of "proactive pacifism", the Abe cabinet is seizing the momentum caused by the changing regional power dynamics in order to edge closer towards "breaking away from the postwar regime". A proposed revision of Japan's constitution, unchanged since 1947, symbolizes the ruling Liberal Democratic Party's (LDP) objective to bring about a more autonomous role for Japan both in the security alliance with the US and as an international actor.
Topic:: Security, Foreign Policy, Defense Policy, Arms Control and Proliferation, Economics, and International Trade and Finance
Political Geography:: Japan, China, and Asia

32. Global Trends of Multi-Factor Productivity

Author:: Jeong Yeon Lee
Publication Date:: 03-2014
Content Type:: Policy Brief
Institution:: East-West Center
Abstract:: Multi-factor productivity (MFP) compares the growth of gross domestic product with the growth of combined capital and labor inputs. The growth rate of MFP assumes theoretical significance because it represents the slope of the steady-state growth path, and hence is a major determinant of the long-term growth trend. This paper offers the balanced panel of the estimated growth rates of MFP for 24 OECD countries over 1986-2011. Based on the estimates of MFP growth, a number of notable trends in productivity growth are identified for the entire OECD area as well as three major economies – the United States, the Eurozone and Japan – within the OECD.
Topic:: Economics, Industrial Policy, International Trade and Finance, and Labor Issues
Political Geography:: United States, Japan, and Europe

33. Northeast Asia's Turbulent Triangle: Korea-China-Japan Relations

Author:: Malcolm Cook
Publication Date:: 01-2014
Content Type:: Working Paper
Institution:: Lowy Institute for International Policy
Abstract:: Northeast Asia is one of the most important crucibles of global economic and strategic change, and it is far from a stable one. The modern histories of China, Japan and South Korea were forged by Japan's colonisation of China and Korea and the Korean War that divided the peninsula and saw China on the side of North Korea and Japan on the side of South Korea. This recent history has left the bilateral relations on each side of this turbulent triangle strained by a lack of trust, popular antipathy and unresolved territorial disputes. As noted in the project's Beijing workshop, the stalled trilateral free trade agreement negotiations between the three Northeast Asian neighbours, launched with great hope in 1997, have been the victim of this turbulence and strain.
Topic:: International Relations, Economics, Human Rights, Bilateral Relations, and Territorial Disputes
Political Geography:: Japan, China, Asia, and North America

34. Implementing Structural Reforms in Abenomics: How to Reduce the Cost of Doing Business in Japan

Author:: Jamal Ibrahim Haidar and Takeo Hoshi
Publication Date:: 06-2014
Content Type:: Working Paper
Institution:: Walter H. Shorenstein Asia-Pacific Research Center
Abstract:: Improving the environment for business is an important part of the growth strategy of Abenomics. As the KPI (Key Performance Indicator) for this effort, the Abe Administration aims to improve Japan's rank in the World Bank Doing Business Ranking from the current #15 among high-income OECD countries to one of the top three. This paper clarifies what it takes for Japan to be among top three countries in terms of ease of doing business. By looking at details of the World Bank Doing Business ranking, we identify various reforms that Japan could implement to improve the ranking. Then, we classify the reforms into four groups depending on whether the reform requires legal changes and whether the reform is likely to face strong political resistance. By just doing the reforms that do not require legal changes and are not likely to face strong political opposition, Japan can improve the ranking to 9th. To be in the top 3, Japan would need to implement all the reforms except for those that require changing the laws and are likely to face strong political resistance, even under the unrealistic assumption that the other countries do not reduce the cost of doing business. Thus, in order to be one of the top three countries among OECD countries in terms of ease of doing business, Japan would most likely need to carry out all the reforms identified in this paper.
Topic:: Economics, International Trade and Finance, and Reform
Political Geography:: Japan

35. Estimates of Fundamental Equilibrium Exchange Rates, November 2014

Author:: William R. Cline
Publication Date:: 11-2014
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: This semiannual review finds that most of the major international currencies, including the US dollar, euro, Japanese yen, UK pound sterling, and Chinese renminbi, remain close to their fundamental equilibrium exchange rates (FEERs). The new estimates find this result despite numerous significant exchange rate movements associated with increased volatility in international financial markets at the beginning of the fourth quarter of 2014, and despite a major reduction in the price of oil. The principal cases of exchange rate misalignment continue to be the undervalued currencies of Singapore, Taiwan, and to a lesser extent Sweden and Switzerland, and the overvalued currencies of Turkey, New Zealand, South Africa, and to a lesser extent Australia and Brazil. Even so, the medium-term current account deficit for the United States is already at the outer limit in the FEERs methodology (3 percent of GDP), and if the combination of intensified quantitative easing in Japan and the euro area with the end to quantitative easing in the United States were to cause sizable further appreciation of the dollar, an excessive US imbalance could begin to emerge.
Topic:: Economics, Foreign Exchange, International Trade and Finance, and Monetary Policy
Political Geography:: Africa, United States, Japan, Turkey, South Africa, Brazil, and New Zealand

36. Japan and Turkey: The Contours and Current Status of an Economic Partnership/Free Trade Agreement

Author:: Scott Morrison
Publication Date:: 04-2014
Content Type:: Journal Article
Journal:: Insight Turkey
Institution:: SETA Foundation for Political, Economic and Social Research
Abstract:: As the third largest economy in the world, Japan cannot be overlooked in any analysis of Asia's importance in international geopolitics and the global political economy. The ties between Japan and Turkey – whether diplomatic, political, economic or societal – span the breadth of Asia. Those ties have become more numerous and consequential in monetary terms over the last half-decade. Although the relationship has not been a top priority for either country, awareness of the potential for mutual gain as a result of more trade and investment has a history of at least three decades. This article surveys the current economic and trade relationship between Turkey and Japan, paying particular attention to recent notable Japanese investments in Turkey and the preliminary positioning of trade representatives in advance of a proposed Free Trade/Economic Partnership Agreement.
Topic:: Economics and Political Economy
Political Geography:: Japan, Turkey, and Asia

37. Energy efficiency: the ever neglected priority of the European energy strategy

Author:: Tania Zgajewski
Publication Date:: 05-2014
Content Type:: Working Paper
Institution:: EGMONT - The Royal Institute for International Relations
Abstract:: Energy saving has been a stated policy objective of the EU since the 1970s. Presently, the 2020 target is a 20% reduction of EU energy consumption in comparison with current projections for 2020. This is one of the headline targets of the European Energy Strategy 2020 but efforts to achieve it remain slow and insufficient. The aim of this paper is to understand why this is happening.
Topic:: Economics, Energy Policy, Regional Cooperation, and Reform
Political Geography:: Japan and Europe

38. Is China's Property Market Heading toward Collapse?

Author:: Li-gang Liu
Publication Date:: 08-2014
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: China's property market has slowed significantly since the first half of 2014, with sharp declines in sales and a buildup in the inventory of new homes. This sharper than expected downturn—which has affected not only second- and third tier smaller cities but also first-tier megacities such as Beijing, Shanghai, Shenzhen, and Guangzhou—contrasts with last year's buoyant sales and double-digit price surge. Compounded by fears of a default in the shadow banking system and the perception of a highly leveraged Chinese economy, the sudden declines in the property sector are being watched closely. Many commentators believe this could be a turning point for the sector, triggering a hard landing of the Chinese economy and even a financial crisis. Over the last decade, China's property sector has become an important pillar for the country's growth as well as the key source for elevated commodity prices. A property market slump would hurt other sectors, as well as drag down resource-rich economies that rely heavily on China to buy their exports.
Topic:: Economics, Financial Crisis, and Urbanization
Political Geography:: Japan, China, and United Nations

39. Mutual Assured Production

Author:: Richard Katz
Publication Date:: 07-2013
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: Tensions between China and Japan are rising, but an economic version of mutual deterrence is preserving the uneasy status quo. Put simply, China needs to buy Japanese products as much as Japan needs to sell them.
Topic:: Cold War, Economics, and Government
Political Geography:: Japan, China, and Beijing

40. Launching the third arrow of Abenomics

Publication Date:: 06-2013
Content Type:: Policy Brief
Institution:: Oxford Economics
Abstract:: Shinzo Abe was elected Prime Minister of Japan last December on a programme intended to end two decades of deflation and lost growth in Japan. His regime, dubbed 'Abenomics', consists of three arrows: a monetary stimulus, a fiscal stimulus and structural reform. The first two are well under way. The third has yet to be fired. But following his party's victory in July's Upper House election, Mr Abe has all the backing he will need – or ever get – to forcefully launch the third arrow of Abenomics. This scenario alert examines the potential upsides for the Japanese economy if Abenomics succeeds. Although the economy will not return to the 4%+ growth rates seen in the 1980s, it could secure growth in the 2-3% range. This would be a major improvement on its dismal performance of less than 1% average real growth a year since 1993.
Topic:: Economics, International Trade and Finance, Markets, Monetary Policy, and Reform
Political Geography:: Japan and Syria

41. US-Japan Relations: Abe Settles In

Author:: Nicholas Szechenyi and Michael J. Green
Publication Date:: 10-2013
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: Prime Minister Abe focused intently on economic policy and led his Liberal Democratic Party to a resounding victory in the July Upper House election, securing full control of the Diet and a period of political stability that bodes well for his policy agenda. Multilateral gatherings in Asia yielded several opportunities for bilateral and trilateral consultations on security issues, and the economic pillar of the alliance also took shape with Japan's entry into the Trans-Pacific Partnership negotiations and discussions on energy cooperation. Comments on sensitive history issues sparked controversy but did not derail bilateral diplomacy. The nomination of Caroline Kennedy as US ambassador to Japan marks a new chapter in the relationship.
Topic:: Economics and Government
Political Geography:: Japan

42. Empirical Investigation of Declining Childbirth: Psychosocial and Economic Conditions in Japan

Author:: Tetsuji Yamada, Chia-Ching Chen, Chie Hanaoka, and Seiritsu Ogura
Publication Date:: 08-2013
Content Type:: Working Paper
Institution:: Walter H. Shorenstein Asia-Pacific Research Center
Abstract:: Background: For the past two decades, more and more women in certain European countries, Japan, and the United States are giving birth to their first child at a considerably later age than ever before. It remains unclear as to what extent this age-related general fertility decline is affected by changing social and cultural norms. Method: The Global Centers of Excellence Survey was conducted by Osaka University in Japan (n=5313) in 2009. Multivariate regression analyses were conducted to examine the impact of psychosocial norms, cultural differences, and economic conditions on the perception of childbearing. Results: The findings suggest that a subjective measure of happiness has a significant influence on childbearing. A society with income inequalities between classes discourages childbearing. It is observed that women's higher labor force participation generates a negative impact on motherchild relations which causes discouragement of childbearing. A higher female labor force participation stemmed from a transition of a traditional society into a modern and marketoriented society discourages childbearing. Conclusions/implications: A woman's decision to delay childbearing is based on her perception of psychosocial norms with surrounding economic environment and her own value of opportunity in the market oriented society. Childbearing also imposes psycho-economic burdens on the working population under mix of a traditional, patriarchal society, and a modern market oriented framework. Childbearing incentives could be a strategic policy to encourage positive attitudes of childbearing in general and proper welfare policy, labor law(s), employment conditions, and social security system for a working mother with a child or children.
Topic:: Economics, Gender Issues, Health, Poverty, Social Stratification, and Labor Issues
Political Geography:: United States, Japan, Europe, Israel, and Asia

43. Japan's strategic pivot south: diversifying the dual hedge

Author:: Corey J. Wallace
Publication Date:: 11-2013
Content Type:: Journal Article
Journal:: International Relations of the Asia-Pacific
Institution:: Japan Association of International Relations
Abstract:: Tensions between Japan and its neighbors pose a significant problem for the viability of Japan's strategic 'dual hedge' between China and the United States. Japan's response has been to embrace renewed US commitment to the region while initiating comprehensive strategic partnerships in military, economic, and political spheres with nations 'south' of its traditional domain of strategic interest. Strengthened relationships with Southeast Asian nations, India, and Australia may turn out to be crucial for Japan as it will enable Japan to manage its security affairs without having to depart from its long-cultivated maritime security policy, and will enable Japan to continue to pursue a neo-mercantilist economic policy while also supporting the socioeconomic development of other regional players essential for future multipolar balance. Japan's diplomatic activities provide a useful 'strategic contrast' with China that will likely ensure Japan is accepted in the region. Japan's strategic pivot is also domestically sustainable and, therefore, deserves scholarly attention.
Topic:: Economics
Political Geography:: United States, Japan, China, India, Asia, and Australia

44. Identifying Options for a New International Climate Regime Arising from the Durban Platform for Enhanced Action

Author:: Robert N. Stavins, Ottmar Edenhofer, and Christian Flachsland
Publication Date:: 10-2013
Content Type:: Policy Brief
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: The goal of the Harvard Project on Climate Agreements is to help identify and advance scientifically sound, economically rational, and politically pragmatic public policy options for addressing global climate change. Drawing upon leading thinkers in Argentina, Australia, China, Europe, India, Japan, and the United States, the Project conducts research on policy architecture, key design elements, and institutional dimensions of domestic climate policy and a post-2015 international climate policy regime. The Project is directed by Robert N. Stavins, Albert Pratt Professor of Business and Government, Harvard Kennedy School.
Topic:: Climate Change, Economics, Energy Policy, Industrial Policy, International Cooperation, and Treaties and Agreements
Political Geography:: United States, Japan, China, Europe, and India

45. Stabilizing Properties of Flexible Exchange Rates: Evidence from the Global Financial Crisis

Author:: Joseph E. Gagnon
Publication Date:: 11-2013
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: There is a long-standing debate among economists and policymakers on the benefits of flexible versus fixed exchange rates (Klein and Shambaugh 2010). In principle, flexible exchange rates allow a country's central bank to focus on stabilizing economic growth and inflation, which are the ultimate goals of monetary policy. However, some argue that in practice central banks often do not use their powers wisely and it may be better to restrict their freedom by requiring them to peg their currency to that of an important trading partner. Others note that flexible exchange rates are far more volatile than fundamental factors can explain (Flood and Rose 1995), raising the possibility that they may introduce wasteful cross-sectoral fluctuations in economic activity. One common viewpoint is that flexible exchange rates may be fine for large countries but that the smallest countries are better off with fixed exchange rates (Åslund 2010).
Topic:: Economics, Foreign Exchange, International Trade and Finance, Markets, and Financial Crisis
Political Geography:: United States, Japan, China, and United Kingdom

46. Three challenges for China's outward FDI policy

Author:: Karl P. Sauvant
Publication Date:: 10-2013
Content Type:: Policy Brief
Institution:: Columbia Center on Sustainable Investment
Abstract:: Since China adopted its "going out" policy in 2001, her outward foreign direct investment (OFDI) flows have grown rapidly, reaching US$84 billion in 2012 (although the stock remains small). That year, China was the world's third largest outward investor (after the US and Japan). This performance raises all sorts of issues, especially because state-owned enterprises (SOEs) control some three-quarters of the country's OFDI stock. Three challenges are addressed in this Perspective.
Topic:: Development, Economics, Emerging Markets, and Foreign Direct Investment
Political Geography:: United States, Japan, and China

47. Open Spectrum: A Major Step for U.S. Innovation and Economic Growth

Author:: Harold Furchtgott-Roth
Publication Date:: 06-2013
Content Type:: Working Paper
Institution:: Hudson Institute
Abstract:: This paper proposes that the Federal Communications Commission adopt rules to allow practically all of the electromagnetic spectrum to be allocated flexibly in response to market conditions and to allow licensees to use their spectrum flexibly. This approach is consistent with the direction of FCC decisions to allow greater spectrum flexibility and would be economically far superior to recent FCC proposals for broadcast spectrum auctions. Spectrum flexibility—or “Open Spectrum”—would eliminate the much-lamented wireless broadband “shortage” without delay and would foster greater innovation in American spectrum markets and transactions and in wireless services and products. The econo mic value of Open Spectrum is probably orders of magnitude greater than the projected $15 billion in receipts from the FCC's broadcast spectrum auctions.
Topic:: Economics, Science and Technology, and Communications
Political Geography:: United States, Japan, and America

48. Japan Post: Anti-Reform Law Clouds Japan's Entry to the Trans-Pacific Partnership

Author:: Gary Clyde Hufbauer and Julia Muir
Publication Date:: 05-2012
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: Our last policy brief on this long-running saga recounted political machinations, late in 2011, to reverse the Koizumi era reforms of Japan Post, a giant among state-owned enterprises (SOEs). As a brief background: Japan Post is a conglomerate of five companies: the parent, Japan Post Holdings; two subsidiaries concerned with operating post offices and delivering mail, namely Japan Post Network and Japan Post Services; and two giant financial arms, Japan Post Bank and Japan Post Insurance.
Topic:: Economics, International Trade and Finance, Treaties and Agreements, and Law
Political Geography:: Japan and Israel

49. Another Shot at Protection by Stealth: Using the Tax Law to Penalize Foreign Insurance Companies

Author:: Gary Clyde Hufbauer
Publication Date:: 01-2012
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The United States suffers from a severe self-inflicted wound. Together, federal and state governments impose almost the highest corporate tax rate found among advanced countries, 39 percent. Only Japan is fractionally higher. The high US rate has adverse consequences—lost investment, lost jobs, and less innovation—and goes a long way to explain slipping US competitiveness in the world economy.
Topic:: Economics, Industrial Policy, International Trade and Finance, and Markets
Political Geography:: United States and Japan

50. Japan Post: Retreat or Advance?

Author:: Gary Clyde Hufbauer and Julia Muir
Publication Date:: 01-2012
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: Legislation to reform Japan Post is again gathering steam in Tokyo. The real question is whether the latest act in this long- running drama will represent true reform or in fact will camouflage an entrenchment of Japan Post's formidable monopoly powers. Antireform proposals being lined up for consideration in the Diet would indefinitely extend effective government control of Japan Post's financial arms (thereby reversing the Koizumi era reforms). On the other hand, reform forces in the Japanese government want new legislation to guarantee a level playing field in banking and insurance between Japan Post and private firms, whether domestic or foreign.
Topic:: Economics, Government, International Trade and Finance, and Natural Disasters
Political Geography:: Japan and Israel

51. The Trans-Pacific Partnership Agreement (TPP) Negotiations: Overview and Prospects

Author:: Deborah Elms and C. L. Lim
Publication Date:: 02-2012
Content Type:: Working Paper
Institution:: Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:: The Trans-Pacific Partnership (TPP) is a trade agreement currently under negotiation between nine countries in three continents, including Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, United States and Vietnam. In late 2011 three additional countries--Japan, Canada and Mexico--announced their intention to join as well. The TPP has always been called a "high quality, 21st century" agreement that covers a range of topics not always found in free trade agreements. This includes not just trade in goods, services and investment, but also intellectual property rights, government procurement, labor, environment, regulations, and small and medium enterprises. This paper traces the complex negotiations and evolution of the talks since the early 2000s to the present.
Topic:: Economics, Environment, International Trade and Finance, Treaties and Agreements, Labor Issues, and Intellectual Property/Copyright
Political Geography:: United States, Japan, Malaysia, Canada, Israel, Vietnam, Latin America, Australia, Australia/Pacific, Mexico, Singapore, Chile, Peru, New Zealand, and Brunei

52. Assessing the Asia Pivot

Author:: Walter Lohman
Publication Date:: 06-2012
Content Type:: Journal Article
Journal:: The Journal of International Security Affairs
Institution:: Jewish Institute for National Security Affairs
Abstract:: In the course of two months in the fall of 2011, the President and his administration—particularly the Secretary of State—conducted a political and diplomatic offensive to prove American staying power in Asia. It marked a 180-degree turn from where the White House had begun three years earlier. The fall offensive began with the long-awaited passage of the Korea-U.S. FTA (KORUS), an agreement of major economic importance. After years of accumulated opportunity costs, in October, the administration finally pushed the agreement forward and arranged for South Korean President Lee Myun-bak to be in Washington for the occasion of its passage. Secretary of State Hillary Clinton framed the new approach in her November “America's Pacific Century” speech, wherein she declared the Administration's “Asia Pivot.”1 President Obama gave the approach authority and economic substance at APEC, where the U.S. secured a game-changing commitment from Japan to join the Transpacific Partnership trade pact (TPP). The President then embarked on his third visit to the Asia Pacific. In Australia, he announced new training rotations of up to 2,500 U.S. Marines through Australia's northern shore, a move with obvious implications for the security of our allies and sea lanes, and in Indonesia, he became the first American president to participate in the East Asian Summit (EAS). At the EAS meeting of 18 regional leaders, President Obama raised the importance of maritime security and freedom of navigation and “expressed strong opposition to the threat or use of force by any party to advance its territorial or maritime claims or interfere in legitimate economic activity”—thereby tying American interests to regional concerns about China. For her part, Secretary Clinton headed to Manila to commemorate the 60th anniversary of the U.S.-Philippines Mutual Defense Treaty (MDT)—and then on to America's other treaty ally in Southeast Asia, Thailand. In Manila Bay, she signed a reaffirmation of the U.S.-Philippines MDT on the deck of a U.S. Navy destroyer and essentially declared America ready to “fight” for the Philippines. She also announced the dispatch to Manila of the second (of what will likely be four) refurbished coast guard cutters. En route to Indonesia, President Obama phoned long-suffering Burmese human rights icon Aung San Suu Kyi to get her blessing for a Burma visit from Secretary Clinton. Clinton arrived in Burma by the end of November, meeting Suu Kyi and the Burmese president and beginning a careful, “action for action” process of normalization that could have major implications for the U.S. strategic position in the region. The Chinese have long taken advantage of Burma's isolation from the U.S. If Burmese political reform proves to be real, it will offer an opportunity for the U.S. to reassert itself there. It will also remove a roadblock in America's relationship with the Association of Southeast Asian Nations (ASEAN) with which it has long disagreed on Burma. A democratic Burma would tip the scales in ASEAN—a hodgepodge of governing systems—in favor of democracy, a state of play that improves the sustainability of American engagement.
Topic:: Security, Economics, and Human Rights
Political Geography:: Afghanistan, Japan, America, Washington, Asia, Australia, and Korea

53. A Note on the Middle Class in Latin America

Author:: Nancy Birdsall
Publication Date:: 08-2012
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: The Carbon Monitoring for Action (CARMA) database provides information about the carbon dioxide emissions, electricity production, corporate ownership, and location of more than 60,000 power plants in over 200 countries. Originally launched in 2007, CARMA is provided freely to the public at www.carma.org and remains the only comprehensive data source of its kind. This paper documents the methodology underpinning CARMA v3.0, released in July, 2012. Comparison of CARMA model output with reported data highlights the general difficulty of precisely predicting annual electricity generation for a given plant and year. Estimating the rate at which a plant emits CO2 (per unit of electricity generated) generally faces fewer obstacles. Ultimately, greater disclosure of plant-specific data is needed to overcome these limitations, particularly in major emitting countries like China, Russia, and Japan. For any given plant in CARMA v3.0, it is estimated that the reported value is within 20 percent of the actual value in 85 percent of cases for CO2 intensity, 75 percent for annual CO2 emissions, and 45 percent for annual electricity generation. CARMA's prediction models are shown to offer significantly better estimates than more naïve approaches to estimating plant-specific performance.
Topic:: Democratization, Economics, Poverty, and Social Stratification
Political Geography:: Russia, Japan, China, America, and Latin America

54. Rising South Korea: A Minor Player or a Regional Power?

Author:: David Shim and Patrick Flamm
Publication Date:: 07-2012
Content Type:: Working Paper
Institution:: German Institute of Global and Area Studies
Abstract:: South Korea’s rising status in regional and global affairs has received much attention in recent years. But in academic, media and policy debates South Korea is usually regarded as a mere middle power that, due to its geopolitical situation, has only limited leeway in its foreign policy. Accordingly, it must constantly maneuver between its larger neighbors: China, Japan and Russia. However, this perspective neglects the fact that the same geopolitical constraint also applies to other states in the region. No country can easily project its power over others. We use the concept of “regional power” as a template to discuss South Korea’s rising stature in regional and global politics. We argue that Seoul seems quite capable of keeping up with other assumed regional powers. Hence, we not only provide a novel account of South Korea’s foreign policy options but also go beyond current approaches by asking about the (undetermined) possibilities for Seoul’s regional relations.
Topic:: Foreign Policy, Economics, and Power Politics
Political Geography:: Russia, Japan, China, Israel, and South Korea

55. Global Poverty Amid Global Plenty: Getting Globalization Right

Author:: Dani Rodrik
Publication Date:: 05-2012
Content Type:: Journal Article
Journal:: Americas Quarterly
Institution:: Council of the Americas
Abstract:: To lift their people out of poverty, nations need to enter the global economy.
Topic:: Economics, Education, and Government
Political Geography:: Japan, China, and Asia

56. Editors' Note

Author:: Michael McKeon and Imani Tate
Publication Date:: 09-2011
Content Type:: Journal Article
Journal:: Georgetown Journal of International Affairs
Institution:: Georgetown Journal of International Affairs
Abstract:: Over the past decade the world has been rocked by earthquakes, hurricanes, and tornadoes on a seemingly endless pattern of destruction. From villagers in Haiti to businessmen in Japan, the Earth's population has watched as-within the blink of an eye-lives have ended, families have been torn apart, and whole communities have taken massive hits to their morale. Yet these tragic events broke the hearts of millions across the globe, another phenomenon has revealed itself among the rubble. Out of hope for a more promising future, possibilities for recovery arose from even the most drastic circumstances. Now, more than ever, the resilience exhibited by those who have been weakened by disaster has allowed them to bounce back and prove their true strength to themselves and to the world. Resilience examines resilience from a diverse set of political, economic, and social perspectives. We invite you to enjoy this theme as well as the cutting-edge international affairs analysis included in the other sections of the Journal.
Topic:: Economics
Political Geography:: Japan

57. North Korea's State-Loyalty Advantage

Author:: B. R. Myers
Publication Date:: 09-2011
Content Type:: Journal Article
Journal:: Journal of International Affairs
Institution:: School of International and Public Affairs, Columbia University
Abstract:: Although North Korea's northern border remains easy to cross, and North Koreans are now well aware of the prosperity enjoyed south of the demilitarized zone, Kim Jong Il continues to rule over a stable and supportive population. Kim enjoys mass support due to his perceived success in strengthening the race and humiliating its enemies. Thanks in part to decades of skillful propaganda, North Koreans generally equate the race with their state, so that ethno-nationalism and state-loyalty are mutually enforcing. In this respect North Korea enjoys an important advantage over its rival, for in the Republic of Korea ethno-nationalism militates against support for a state that is perceived as having betrayed the race. South Koreans' “good race, bad state” attitude is reflected in widespread sympathy for the people of the North and in ambivalent feelings toward the United States and Japan, which are regarded as friends of the republic but enemies of the race. But North Korea cannot survive forever on the public perception of state legitimacy alone. The more it loses its economic distinctiveness vis-à-vis the rival state, the more the Kim regime must compensate with triumphs on the military and nuclear fronts. Another act of aggression against the Republic of Korea may well take place in the months ahead, not only to divert North Korean public attention from the failures of the consumer-oriented “Strong and Prosperous Country” campaign, but also to strengthen the appeasement-minded South Korean opposition in the run-up to the presidential election in 2012.
Topic:: Economics
Political Geography:: United States, Japan, and North Korea

58. Quantitative Easing and Bank Lending: Evidence from Japan

Author:: David Bowman, Fang Cai, Sally Davies, and Steve Kamin
Publication Date:: 06-2011
Content Type:: Working Paper
Institution:: Board of Governors of the Federal Reserve System
Abstract:: Prior to the recent financial crisis, one of the most prominent examples of unconventional monetary stimulus was Japan's "quantitative easing policy" (QEP). Most analysts agree that QEP did not succeed in stimulating aggregate demand sufficiently to overcome persistent deflation. However, it remains unclear whether QEP simply provided little stimulus, or whether its positive effects were overwhelmed by the contractionary forces in Japan's post-bubble economy. In the spirit of Kashyap and Stein (2000) and Hosono (2006), this paper uses bank-level data from 2000 to 2009 to examine the effectiveness in promoting bank lending of a key element of QEP, the Bank of Japan's injections of liquidity into the interbank market. We identify a robust, positive, and statistically significant effect of bank liquidity positions on lending, suggesting that the expansion of reserves associated with QEP likely boosted the flow of credit. However, the overall size of that boost was probably quite small. First, the estimated response of lending to liquidity positions in our regressions is small. Second, much of the effect of the BOJ's reserve injections on bank liquidity was offset as banks reduced their lending to each other. Finally, the effect of liquidity on lending appears to have held only during the initial years of QEP, when the banking system was at its weakest; by 2005, even before QEP was abandoned, the relationship between liquidity and lending had evaporated.
Topic:: Economics, Financial Crisis, Lending, and Banking
Political Geography:: Japan and Asia

59. Popular Nationalism in China and the Sino-Japanese Relationship: The Conflict in the East China Sea

Author:: Erik Beukel
Publication Date:: 02-2011
Content Type:: Working Paper
Institution:: Danish Institute for International Studies (DIIS)
Abstract:: The Sino-Japanese relationship is a highly complex one, marked both by Japan's aggressive wars from the 1930s on and the present economic interdependence between the two countries. Focusing on the role of the territorial conflict in the East China Sea, this DIIS Report considers how China's leaders handle anti-Japanese nationalism by adopting a Janusian stance and pursuing both China's basic interest in close economic relations with Japan and also domestic stability. After a review of Chinese and Japanese sovereignty claims in the area and of the rise of nationalism since the early 1980s, four crises over the East China Sea are examined to identify the character of and changes in China's policy. For the last ten years China's leaders have attempted to conduct a more pragmatic policy towards Japan and evade the pernicious shadow of history. But this policy faces critical problems both in a growing popular nationalism in China and in the Japanese government's lack of willingness to restrain their own nationalists and the absence of legal possibilities for them to do so.
Topic:: Conflict Resolution, Economics, and Bilateral Relations
Political Geography:: Japan, China, Israel, and Asia

60. Earthquake, Tsunami Hit Japan: Assessing the Economic Impact

Author:: Sheila Smith
Publication Date:: 03-2011
Content Type:: Video
Institution:: Council on Foreign Relations
Abstract:: The earthquake and tsunami that hit Japan will have a severe, lasting impact on the Japanese economy, says CFR's Sheila Smith, Senior Fellow for Japan Studies.
Topic:: Economics, Energy Policy, and Natural Disasters
Political Geography:: Japan and East Asia

61. Japan's Economy after the Quake

Author:: Kilbinder Dosanjh
Publication Date:: 03-2011
Content Type:: Working Paper
Institution:: Economist Intelligence Unit
Abstract:: The human cost Many companies (Sony, Toyota) have shut factories in affected area As much as 10% of national power production temporarily down Rolling blackouts will continue until end-April.
Topic:: Economics, Humanitarian Aid, and Natural Disasters
Political Geography:: Japan, Israel, and Asia

62. The Post-Washington Consensus: Development after the Crisis

Author:: Francis Fukuyama and Nancy Birdsall
Publication Date:: 03-2011
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: A clear shift in the development agenda is underway. Traditionally, an agenda generated in the developed world was implemented in—and, indeed, often imposed on—the developing world. The United States, Europe, and Japan will continue to be significant sources of economic resources and ideas, but the emerging markets will become significant players. Countries such as Brazil, China, India, and South Africa will be both donors and recipients of resources for development and of best practices for how to use them. In fact, development has never been something that the rich bestowed on the poor but rather something the poor achieved for themselves. It appears that the Western powers are finally waking up to this truth in light of a financial crisis that, for them, is by no means over.
Topic:: Development, Economics, Emerging Markets, Poverty, and Foreign Aid
Political Geography:: United States, Japan, China, Europe, India, South Africa, and Brazil

63. The Economic Impact of the Earthquake and Tsunami in Japan: What Will It Mean for Your Business?

Publication Date:: 04-2011
Content Type:: Working Paper
Institution:: Oxford Economics
Abstract:: The Tohoku Pacific earthquake which struck Japan on 11th March was the most serious to hit Japan since the Kobe earthquake of 1995, and was followed by a highly destructive tsunami. As well as having significant short-term economic and financial impacts, these disasters could also leave a longer-term footprint on the Japanese and global economies.
Topic:: Economics, International Trade and Finance, Markets, and Natural Disasters
Political Geography:: Japan

64. Getting Surplus Countries to Adjust

Author:: John Williamson
Publication Date:: 01-2011
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: The world has witnessed two distinct attempts to build a multilateral mechanism to discipline surplus countries that declined to adjust their surpluses, and several proposals are currently on the table to do the same. On the two previous occasions the major surplus country of the day defeated attempts to create such a mechanism, and today China (not to mention Japan or Germany) exhibits no enthusiasm for the idea. Despite the importance of the issue, there has been remarkably little discussion of these proposals.
Topic:: Economics, International Trade and Finance, International Monetary Fund, and Monetary Policy
Political Geography:: Japan, China, and Germany

65. Are the advanced economies facing a lost decade?

Publication Date:: 07-2011
Content Type:: Policy Brief
Institution:: Oxford Economics
Abstract:: Recent weeks have seen a slew of weaker-than-expected data releases from the major economies, raising doubts about whether the expansion in the developed nations is sustainable. One reason for the apparent loss of momentum has been the moderation of growth in the emerging markets, as central banks have tightened monetary policy in response to rising inflation. The weakening trend in growth indicators can also be linked to temporary adverse factors, including supply chain disruptions form the Japanese earthquake and tsunami, as well as the sharp rise in oil prices earlier this year.
Topic:: Economics, Globalization, International Trade and Finance, and Financial Crisis
Political Geography:: Japan

66. The role of multinationals in sparking industrialization: From "infant industry protection" to "FDI-led industrial take-off"

Author:: Terutomo Ozawa
Publication Date:: 06-2011
Content Type:: Policy Brief
Institution:: Columbia Center on Sustainable Investment
Abstract:: Although not yet fully conceptualized as a new catch-up model in mainstream development economics, the infant industry argument (protectionism designed to replace imports with domestic substitutes) is giving way to a foreign direct investment (FDI)-led model of industrialization.
Topic:: Development, Economics, Industrial Policy, and Foreign Direct Investment
Political Geography:: United States, Japan, and China

67. Global Matrix: A conceptual and organisational framework for researching the future of global governance

Author:: Daniel Gros, Richard Youngs, Michael Emerson, Christian Egenhofer, Nathalie Tocci, Giovanni Grevi, and Jean-Pierre Cassarino
Publication Date:: 07-2011
Content Type:: Working Paper
Institution:: Centre for European Policy Studies (CEPS)
Abstract:: Conceptually, Global Matrix advances in a systematic and structured inter-disciplinary (matrix) framework a research agenda for examining the stance of major world actors on the key policy dimensions to world politics (political ideologies, economics, migration, climate change, security and world view); drawing out evidence of cross-cutting linkages (between sectors and among major actors); and evaluating the evolution and adequacy of existing multilateral institutions in relation to the emerging multi-polarity, and formulating recommendations.
Topic:: Security, Climate Change, Economics, Globalization, International Cooperation, International Organization, and Governance
Political Geography:: Japan, South Africa, Brazil, and Korea

68. From the FDI Triad to multiple FDI poles?

Author:: Karl P. Sauvant and Persephone Economou
Publication Date:: 07-2011
Content Type:: Policy Brief
Institution:: Columbia Center on Sustainable Investment
Abstract:: Twenty years ago, in the inaugural issue of the World Investment Report, the United Nations highlighted a shift in the global pattern of foreign direct investment (FDI) from bipolar, dominated by the United States and the European Community, to tri-polar (the FDI Triad), dominated by the European Community, the United States and Japan.
Topic:: Economics, International Trade and Finance, United Nations, and Foreign Direct Investment
Political Geography:: United States, Japan, and Europe

69. Asia's century and the problem of Japan's centrality

Author:: Brendan Taylor
Publication Date:: 07-2011
Content Type:: Journal Article
Institution:: Chatham House
Abstract:: Japan has long been regarded as a central component of America's grand strategyin Asia. Scholars and practitioners assume this situation will persist in the face of China's rise and, indeed, that a more 'normal' Japan can and should take on anincreasingly central role in US-led strategies to manage this power transition. Thisarticle challenges those assumptions by arguing that they are, paradoxically, beingmade at a time when Japan's economic and strategic weight in Asian security isgradually diminishing. The article documents Japan's economic and demographicchallenges and their strategic ramifications. It considers what role Japan mightplay in an evolving security order where China and the US emerge as Asia's twodominant powers by a significant margin. Whether the US-China relationshipis ultimately one of strategic competition or accommodation, it is argued thatJapan's continued centrality in America's Asian grand strategy threatens to becomeincreasingly problematic. It is posited that the best hope for circumventing thisproblem and its potentially destabilizing consequences lies in the nurturing of anascent 'shadow condominium' comprising the US and China, with Japan as a'marginal weight' on the US side of that arrangement.
Topic:: Security and Economics
Political Geography:: United States, Japan, China, and America

70. Reality or Symbolism in the Relationship

Author:: David C. Kang and Jiun Bang
Publication Date:: 09-2011
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: South Korea and Japan are neighbors that are advanced, technologically sophisticated capitalist economies with capable and well-educated populations, and are fully consolidated liberal democracies. They share an alliance with the US, and generally view themselves as stalwart regional allies. As has been the case for many years, relations between them during the past four months were relatively stable, with increasingly deep economic relations, voluminous cultural flows, and general agreement on a strategy of isolation toward North Korea. They also share a tendency to provoke each other over their shared history and the ownership of several islets that sit between them. When this happens, the media goes into a frenzy, breathlessly reporting the latest incident. But which is reality? Do the historical disputes meaningfully affect their bilateral relations? On the one hand, yes: they could cooperate more closely on issues such as military coordination and a free-trade agreement. On the other hand, no: it's not at all clear that historical issues are holding up cooperation and relations are deeper across a range of issues.
Topic:: Economics
Political Geography:: United States, Japan, South Korea, and North Korea

71. Cooperation, Competition, and the Search for Community: Asia's New Multilateralism

Author:: Sheldon W. Simon
Publication Date:: 09-2011
Content Type:: Journal Article
Journal:: International Relations of the Asia-Pacific
Institution:: Japan Association of International Relations
Abstract:: A successful edited volume not only requires that the editors recruit qualified specialists for each chapter but also that those editors integrate the separate analyses so that the book displays a coherence beyond the sum of its individual parts. Michael Green and Bates Gill have succeeded admirably on both dimensions: enlisting renowned Asian country specialists and experts on the various types of cooperation that characterize Asian multilateralism. Moreover, their Introduction illuminates how these types relate to one another. Over the past 45 years, Asia has experienced a plethora of multilateral political, economic, and security arrangements – some long-lived and well-institutionalized (ASEAN) and others formed to deal with a specific situation such as the Core Group that provided aid to those countries devastated by the December 2004 tsunami. There is considerable overlap in states ' memberships among these bodies, though they tend to group in a Southeast Asian-led formation centered in ASEAN and a Northeast Asian coterie dealing with North Korea in the Six-Party Talks. An additional transnational dimension may be found in nontraditional security such as infectious diseases, criminal and terrorist activities, piracy and human trafficking, all of which cross national boundaries and are generally seen by Asian states as susceptible to cooperative action. Traditional, hard security concerns – territorial disputes, historical animosities, and resource conflicts – on the other hand, though discussed in a number of multilateral settings, produce a great deal of rhetoric but very little resolution. Another concern, especially for great powers such as the United States and India, is whether East Asian multilateral groups will be inclusive or exclusive – trans-Pacific or Asia only.
Topic:: Economics, Globalization, and National Security
Political Geography:: United States, Japan, and Asia

72. The G20: Engine of Asian Regionalism?

Author:: Hugo Dobson
Publication Date:: 11-2011
Content Type:: Working Paper
Institution:: German Institute of Global and Area Studies
Abstract:: As a result of the emergence of the G20 as the self‐appointed “premier forum for international economic cooperation”, Asia's expanded participation in G‐summitry has attracted considerable attention. As original G7 member Japan is joined by Australia, China, Indonesia, India and South Korea, this has given rise to another alphanumeric configuration of the Asian 6 (A6). Resulting expectations are that membership in the G20 will impact Asian regionalism as the A6 are forced into coordination and cooperation in response to the G20's agenda and commitments. However, by highlighting the concrete behaviours and motivations of the individual A6 in the G20 summits so far, this paper stands in contrast to the majority of the predominantly normative extant literature. It highlights divergent agendas amongst the A6 as regards the future of the G20 and discusses the high degree of competition over their identities and roles therein. This divergence and competition can be seen across a range of other behaviours including responding to the norm of internationalism in promoting global governance and maintaining the status quo and national interest, in addition to claiming a regional leadership role and managing bilateral relationships with the US.
Topic:: Economics, Emerging Markets, Globalization, International Trade and Finance, Regional Cooperation, and Governance
Political Geography:: United States, Japan, China, Indonesia, India, Asia, South Korea, and Australia

73. The Sick Man of Asia

Author:: Yanzhong Huang
Publication Date:: 11-2011
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: Although China has made remarkable economic progress over the past few decades, its citizens' health has not improved as much. Since 1980, the country has achieved an average economic growth rate of ten percent and lifted 400–500 million people out of poverty. Yet Chinese official data suggest that average life expectancy in China rose by only about five years between 1981 and 2009, from roughly 68 years to 73 years. (It had increased by almost 33 years between 1949 and 1980.) In countries that had similar life expectancy levels in 1981 but had slower economic growth thereafter -- Colombia, Malaysia, Mexico, and South Korea, for example -- by 2009 life expectancy had increased by 7–14 years. According to the World Bank, even in Australia, Hong Kong, Japan, and Singapore, which had much higher life expectancy figures than China in 1981, those figures rose by 7–10 years during the same period.
Topic:: Economics
Political Geography:: Japan, China, Malaysia, Asia, South Korea, Colombia, Australia, Mexico, and Hong Kong

74. The Economic Consequences of Shifting Away From Nuclear Energy

Author:: Ken Itakura
Publication Date:: 12-2011
Content Type:: Policy Brief
Institution:: Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:: In the aftermath of the devastating nuclear fallout in Japan, there has been a harsh debate surrounding the role of nuclear energy in electricity generation. A changing role will have economic consequences on production, consumption, and international trade. To quantity these effects, we implemented simulations with a global CGE model and database. The simulation results show that reductions in the use of nuclear for electric power generation may have profound negative impacts on the Japanese economy. A nuclear accident at the Fukushima power plant changed the future direction of Japanese energy policy as well as Asian energy policy. These policies are integrated via technological, financial, and nuclear energy knowledge sharing activities within the region. The main objective of this policy brief is to shed some light on the following question: what would be the economic consequences of altering the source of power generation from nuclear to fossil fuels? This Japanese case study offers policy implications for both Japan and the region as a whole.
Topic:: Economics, Energy Policy, International Trade and Finance, Economy, and Nuclear Energy
Political Geography:: Japan and Asia

75. Top of the Class

Author:: Richard C. Levin
Publication Date:: 05-2010
Content Type:: Journal Article
Journal:: Foreign Affairs
Institution:: Council on Foreign Relations
Abstract:: The rapid economic development of Asia since World War II -- starting with Japan, South Korea, and Taiwan, then extending to Hong Kong and Singapore, and finally taking hold powerfully in India and mainland China -- has forever altered the global balance of power. These countries recognize the importance of an educated work force to economic growth, and they understand that investing in research makes their economies more innovative and competitive. Beginning in the 1960s, Japan, South Korea, and Taiwan sought to provide their populations with greater access to postsecondary education, and they achieved impressive results. Today, China and India have an even more ambitious agenda. Both seek to expand their higher-education systems, and since the late 1990s, China has done so dramatically. They are also aspiring to create a limited number of world-class universities. In China, the nine universities that receive the most supplemental government funding recently self-identified as the C9 -- China's Ivy League. In India, the Ministry of Human Resource Development recently announced its intention to build 14 new comprehensive universities of "world-class" stature. Other Asian powers are eager not to be left behind: Singapore is planning a new public university of technology and design, in addition to a new American-style liberal arts college affiliated with the National University. Such initiatives suggest that governments in Asia understand that overhauling their higher-education systems is required to sustain economic growth in a postindustrial, knowledge-based global economy. They are making progress by investing in research, reforming traditional approaches to curricula and pedagogy, and beginning to attract outstanding faculty from abroad. Many challenges remain, but it is more likely than not that by midcentury the top Asian universities will stand among the best universities in the world.
Topic:: Development, Economics, and War
Political Geography:: Japan, China, Taiwan, and South Korea

76. The Realities and Relevance of Japan's Great Recession: Neither Ran nor Rashomon

Author:: Adam S. Posen
Publication Date:: 06-2010
Content Type:: Working Paper
Institution:: Peterson Institute for International Economics
Abstract:: Japan's Great Recession was the result of a series of macroeconomic and financial policy mistakes. Thus, it was largely avoidable once the initial shock from the bubble bursting had passed. The aberration in Japan's recession was not the behaviour of growth, which is best seen as a series of recoveries aborted by policy errors. Rather, the surprise was the persistent steadiness of limited deflation, even after recovery took place. This is a more fundamental challenge to our basic macroeconomic understanding than is commonly recognized. The UK and US economies are at low risk of having recurrent recessions through macroeconomic policy mistakes—but deflation itself cannot be ruled out. The United Kingdom worryingly combines a couple of financial parallels to Japan with far less room for fiscal action to compensate for them than Japan had. Also, Japan did not face poor prospects for external demand and the need to reallocate productive resources across export sectors during its Great Recession. Many economies do now face this challenge simultaneously, which may limit the pace of, and their share in, the global recovery.
Topic:: Economics, Markets, Monetary Policy, and Financial Crisis
Political Geography:: United States, Japan, and United Kingdom

77. The Big U-Turn: Japan Threatens to Reverse Postal Reforms

Author:: Gary Clyde Hufbauer and Julia Muir
Publication Date:: 06-2010
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: On May 31, 2010 a majority of the Lower House of the National Diet of Japan approved legislation that would reverse a decade's worth of effort to fully privatize key subsidiaries of Japan Post Holdings Co. Ltd. Besides postal services, the state-run postal system offers banking and insurance services, through Japan Post Bank (JPB) and Japan Post Insurance (JPI), respectively. These are the financial engines of Japan Post and were the units slated for privatization. Both subsidiaries have long received favorable government treatment, tilting the playing field against private banks and insurance firms, whether foreign or domestic. The government of Japan is in clear violation of its commitments under the World Trade Organization (WTO), and if the Upper House approves the legislation, Japan will reverse the efforts made by the United States and the European Union, as well as domestic private banks and insurance firms, to establish a level playing field. What's more, Japan risks having a formal WTO dispute brought against it.
Topic:: Economics, Government, and Privatization
Political Geography:: United States, Japan, and Europe

78. US-Japan Relations

Author:: Michael J. Green and Nicholas Szechenyi
Publication Date:: 03-2010
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: Prime Minister Hatoyama Yukio moved to implement his domestic policy agenda with an eye toward the Upper House elections this summer but watched his approval rating fall as he and members of his ruling Democratic Party of Japan (DPJ) were beset by political fundraising scandals. The impasse over the relocation of Marine Air Station Futenma continued to dominate the bilateral agenda and alternative proposals put forth by the Hatoyama government failed to advance the discussion. Concerns about barriers to US exports and the restructuring of Japan Post emerged in commentary by the Obama administration and congressional leaders but a joint statement highlighting cooperation on the Asia-Pacific Economic Cooperation forum (APEC) reinforced the economic pillar of the relationship. The Toyota hearings in Congress were covered extensively by media in both countries but did not have an immediate impact on US-Japan relations. However, the recall issue and other developments point to potentially negative perceptions that could cloud official efforts to build a comprehensive framework for the alliance over the course of the year, the 50th anniversary of the 1960 US-Japan Security Treaty.
Topic:: Security and Economics
Political Geography:: United States, Japan, and Asia

79. Japan-China Relations

Author:: James J. Przystup
Publication Date:: 09-2010
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: The quarter started well. The Kan government, emphasizing efforts to strengthen economic ties with China, appointed Niwa Uchiro, former president of the trading giant Itochu Corp., as Japan‟s new ambassador to China. Talks to implement the June 2008 agreement on joint development of the East China Sea began in Tokyo in late July. Prime Minister Kan and all Cabinet members refrained from visiting Yasukuni Shrine on Aug. 15. In early September, Japan began the destruction of chemical weapons left behind in China by the Imperial Army at the end of the war. The quarter, however, ended in controversy. Sparked by the Sept. 7 incident in which a Chinese fishing boat operating near the Senkaku Islands collided with two Japanese Coast Guard ships, relations quickly spiraled downward. The Japanese Coast Guard detained the captain and crew setting off a diplomatic row that led to the Japanese ambassador being called in for a midnight demarche as well as the personal involvement of Premier Wen Jiabao before Japanese prosecutors released the ship's captain on Sept. 24. China's call for compensation and an apology went unanswered as of the end of the quarter.
Topic:: Economics and Government
Political Geography:: Japan and China

80. The Future of the Chiang Mai Initiative: An Asian Monetary Fund?

Author:: C. Randall Henning
Publication Date:: 02-2009
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: In September 1997, at the outset of the last global financial crisis, the Japanese Ministry of Finance proposed the creation of an Asian Monetary Fund. Although this particular proposal was scuttled, the idea of a common regional fund on which East Asian governments might draw in times of financial turmoil survives. The region's disaffection from the International Monetary Fund (IMF), stemming from the 1997–98 crisis, sustains this idea and a desire on the part of individual countries to self-insure with large holdings of foreign exchange reserves. East Asian governments and central banks have created a set of bilateral swap arrangements (BSAs) dubbed the Chiang Mai Initiative (CMI) and are negotiating among themselves to build these BSAs into a more comprehensive facility. Some Asian officials hope that such a facility could underpin exchange rate cooperation and monetary integration in the region, although such proposals remain for the moment long-term visions.
Topic:: Economics, International Cooperation, International Trade and Finance, Regional Cooperation, and Financial Crisis
Political Geography:: Japan, Israel, and Asia

81. Forget Bretton Woods II: the Role for U.S.-Japan-China Trilateralism

Author:: Yoichi Funabashi
Publication Date:: 04-2009
Content Type:: Journal Article
Journal:: The Washington Quarterly
Institution:: Center for Strategic and International Studies
Abstract:: In this age of globalization, nations rise and fall in the world markets day and night. Europe, Germany in particular, may at first have indulged in a certain amount of schadenfreude to observe the abrupt fall from grace of the U.S. financial system. But not for long. As of November 2008, the euro zone is officially in a recession that continues to deepen. Germany's government was compelled to enact a 50 billion euro fiscal stimulus package. The Japanese economy, though perhaps among the least susceptible to the vagaries of the European and U.S. economies, followed soon after, with analysts fearing that the downturn could prove deeper and longer than originally anticipated. The U.S.—Europe—Japan triad, representing the world's three largest economies, is in simultaneous recession for the first time in the post-World War II era. China, meanwhile, is suddenly seeing its 30-year economic dynamism lose steam, with its mighty export machine not just stalling but actually slipping into reverse.
Topic:: Economics, Globalization, and Government
Political Geography:: United States, Japan, China, Europe, and Germany

82. Linkage Diplomacy: Economic and Security Bargaining in the Anglo-Japanese Alliance, 1902-23

Author:: Christina L. Davis
Publication Date:: 03-2009
Content Type:: Journal Article
Journal:: International Security
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: How do states use economic-security linkages in international bargaining? Governments can provide economic benefits as a side payment to reinforce security cooperation and use close security ties as a source of bargaining leverage in economic negotiations. Domestic political pressures, however, may constrain the form of linkage. First, economic side payments are more likely to be chosen in areas that will not harm the key interests of the ruling party. Second, involvement by the legislature pushes governments toward using security ties as bargaining leverage for economic gains. Evidence from negotiations between Britain and Japan during the Anglo-Japanese alliance of 1902 to 1923 supports the constraining role of domestic politics. Economic-security linkages occurred as Britain gave favorable economic treatment to Japan in order to strengthen the alliance. Economic competition between the allies, however, made it difficult for Britain to grant asymmetrical economic benefits. In tariff negotiations where business interests had more influence in the domestic policy process, the alliance was used as leverage to force reciprocity.
Topic:: Security, Diplomacy, Economics, and Government
Political Geography:: Britain and Japan

83. Investment from the GCC and Development in the Mediterranean. The Outlook for EU-GCC Financial and Economic Cooperation in the Mediterranean

Author:: Bénédict de Saint-Laurent
Publication Date:: 12-2009
Content Type:: Working Paper
Institution:: Istituto Affari Internazionali
Abstract:: Basic questions posed in this study were whether the trend of Gulf involvement in the Mediterranean economies was sustainable, what the specifics of those investments are, and could a triangular cooperation be envisaged? What is clear is that Gulf investors have become major players in the Mediterranean with an investment volume of more than 70 billion Euro in nearly 700 projects since January 2003. The Gulf now seems to have joined Europe as a sustainable second investment pillar. The complementarities between needs and resources of Europe, GCC and Med countries call for the implementation of an integrated co-operation model, similar to the Japan-China-ASEAN triangle.
Topic:: Development, Economics, and Foreign Direct Investment
Political Geography:: Japan, China, Middle East, and Arabia

84. The Economic Impact of International Students from a Cross-National Perspective

Author:: Robert Gutierrez, Patricia Chow, Jason Baumgartner, and Yuriko Sato
Publication Date:: 05-2009
Content Type:: Policy Brief
Institution:: Institute of International Education (IIE)
Abstract:: IIE Open Doors Data on U.S. International Educational Exchange. Project Atlas: Global Student Mobility. International Student Economic Impact in the U.S. Comparison of International Student Economic Impact in USA, Japan and Australia.
Topic:: Foreign Policy, Economics, Markets, and Migration
Political Geography:: United States, Japan, China, Asia, California, Australia, and Texas

85. The Economics of Energy Efficiency in Buildings

Author:: Trevor Houser
Publication Date:: 08-2009
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: At the 2008 summit in Hokkaido, Japan, and again in 2009 in L'Aquila, Italy, G-8 leaders called for a 50 percent global reduction in greenhouse gas (GHG) emissions below current levels by 2050 to avoid “the most serious consequences of climate change.” Meeting this goal will require transforming the way energy is produced, delivered, and consumed across all sectors of the economy and regions of the world. Buildings, which account for nearly 40 percent of global energy demand today and 30 percent of projected growth in energy demand between now and 2050, will play a critical role in this process (IEA 200).
Topic:: Climate Change, Economics, and Energy Policy
Political Geography:: Japan and Italy

86. How Do We Know This is Not Another Great Depression? Lessons for Policymakers from the 1930s

Author:: Jeffrey Frankel
Publication Date:: 07-2009
Content Type:: Policy Brief
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: The current economic crisis is fundamentally different from those we have experienced in recent past. The proximate causes of previous recessions (1980-2 and 1990-91) were increases in interest rates in response to inflation. This time around, however, low interest rates and loose monetary policy during the period 2003-2005 had contributed to a bubble in asset prices, rather than to inflation. This-coupled with an underestimation of risk in our financial system, failures of corporate governance, and excessive debt by both households and government-caused the crisis of 2007-09.
Topic:: Economics, International Trade and Finance, Monetary Policy, and Financial Crisis
Political Geography:: United States, Japan, and Germany

87. Criss-Crossing Globalization: Uphill Flows of Skill-Intensive Goods and Foreign Direct Investment

Author:: Arvind Subramanian and Aaditya Mattoo
Publication Date:: 08-2009
Content Type:: Working Paper
Institution:: Center for Global Development
Abstract:: This paper documents an unusual and possibly significant phenomenon: the export of skills, embodied in goods, services or capital from poorer to richer countries. We first present a set of stylized facts. Using a measure which combines the sophistication of a country's exports with the average income level of destination countries, we show that the performance of a number of developing countries, notably China, Mexico and South Africa, matches that of much more advanced countries, such as Japan, Spain and USA. Creating a new combined dataset on FDI (covering greenfield investment as well as mergers and acquisitions) we show that flows of FDI to OECD countries from developing countries like Brazil, India, Malaysia and South Africa as a share of their GDP, are as large as flows from countries like Japan, Korea and the US. Then, taking the work of Hausmann et al (2007) as a point of departure, we suggest that it is not just the composition of exports but their destination that matters. In both cross-sectional and panel regressions, with a range of controls, we find that a measure of uphill flows of sophisticated goods is significantly associated with better growth performance. These results suggest the need for a deeper analysis of whether development benefits might derive not from deifying comparative advantage but from defying it.
Topic:: Development, Economics, International Trade and Finance, and Foreign Direct Investment
Political Geography:: United States, Japan, Malaysia, India, South Africa, Brazil, Spain, and Korea

88. Leaders and laggards, on the way down and up

Publication Date:: 10-2009
Content Type:: Working Paper
Institution:: Oxford Economics
Abstract:: With the economies of most countries having passed their troughs, it is a good time to take stock of some of the main features of the crisis so far and to assess what the upturn may look like. In this article, we look back at how the different countries have fared in this crisis and how monetary and fiscal authorities have responded to the crisis. We then turn to the nascent recovery to compare and contrast the upturn across countries. Finally, we highlight some of the main legacies of this crisis. Exposure to financial services, housing booms, consumer debt and trade with the US were seen as factors that would make some countries suffer deeper downturns than others. In the event, the downturn has surprised by how quickly it has spread across countries. So the most affected countries turned out to be the most exposed to the world economy such as Germany, Italy, Japan and Eastern Europe. All major central banks have responded with aggressive cuts in interest rates and adopted wide-ranging unconventional measures. This has helped stabilise financial markets, but the goal of getting credit flowing to the non-financial economy has not yet been achieved. Governments have also responded to the crisis with large fiscal stimulus packages. These packages have helped contain the collapse in activity and contributed to some countries exiting the recession in 2009Q2. Whether these packages will be enough to get the world economy back on a sustainable growth path is still uncertain though. Beyond the short term, where fiscal stimulus and the stock cycle will boost growth, the recovery is expected to be sluggish and bumpy in most places. History suggests that recoveries from financial crises tend to be slower than others, and the repair of household and corporate balance sheets will be a drawn out process. In addition, with large amounts of spare capacity around the world, demand for investment will be weak for some time to come. Furthermore, the nascent upturn has already put pressure on oil and commodity prices. If this continues, it will hamper growth in net importer economies. These factors will combine with country-specific features that determine their potential growth. We forecast the recovery to be most drawn out in Italy, Japan and Germany as these countries are hit by weak demand for investment goods and are characterised by relatively low potential growth. One main legacy of this crisis is the likelihoo d of years of fiscal austerity, to bring public deficits back under control. Another legacy may be in changes to the regulation of financial services, although do date little progress has been made in this area. In addition, EMU has so far proved a resilient entity during the crisis, so that the euro could gain a more prominent role on the world stage, depending on how it fares in the upturn.
Topic:: Economics, Globalization, and Markets
Political Geography:: Japan, Europe, Germany, and Italy

89. A G-20 caucus for East Asia

Author:: Stephen Grenville and Mark P Thirlwell
Publication Date:: 10-2009
Content Type:: Policy Brief
Institution:: Lowy Institute for International Policy
Abstract:: In September 2009 the Pittsburgh Summit designated the G-20 as the world's premier forum for international cooperation. The G-20's arrival at the apex of the international economic architecture gives East Asia a much greater presence at the top table of the world economy: six regional economies, including Australia, are members of the G-20, in contrast to the G7, which only had room for Japan. This increase in representation creates important new opportunities for the region. But making use of these opportunities requires significant increases in policy-making resources. Unfortunately, in many Asian economies, such resources are in short supply relative to the wide variety of pressing problems the region currently faces.
Topic:: Economics, International Cooperation, and International Organization
Political Geography:: Japan, Israel, East Asia, and Australia/Pacific

90. Regional Overview

Author:: Ralph A. Cossa and Brad Glosserman
Publication Date:: 01-2009
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: No abstract is available.
Topic:: Economics
Political Geography:: Japan, Asia, South Korea, and Thailand

91. U.S.-China Relations

Author:: Bonnie Glaser
Publication Date:: 01-2009
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: The U.S. and China held the 5th Strategic Economic Dialogue and the 6th Senior Dialogue this quarter. The global financial crisis was a focal point of discussion in both dialogues, as well as in the meeting between Presidents Bush and Hu Jintao on the sidelines of APEC in Lima, Peru. Beijing responded to the announced U.S. sale of $6.5 billion in arms to Taiwan by suspending bilateral military exchanges between the U.S. and China and talks on nonproliferation. China's internal debate about the international structure of power and the status of the U.S. was revived as the two prepared to celebrate the 30th anniversary of the establishment of diplomatic ties.
Topic:: Economics and Government
Political Geography:: United States, Japan, and Beijing

92. Japan-Korea Relations

Author:: David C. Kang
Publication Date:: 01-2009
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: The year ended fairly quietly in Japan-Korea relations with no major events marking the last few months of 2008. Japan-North Korea relations remained stagnant and Japan-South Korea relations essentially ignored the Dokdo/Takeshima dispute, instead focusing on dealing with the widening global economic crisis. The biggest diplomatic event was the successful trilateral summit in December among China, Korea, and Japan, which may set the stage for further diplomatic movement. Whether 2009 will bring dramatic progress on these issues remains to be seen, but with new leaders in Japan and South Korea entering their first full years of rule, the continued concerns about the health of North Korea's leader, and a new U.S. president, the new year holds the possibility for progress on at least some of these issues.
Topic:: International Relations and Economics
Political Geography:: United States, Japan, China, North Korea, and Korea

93. U.S.-Japan Relations

Author:: Michael J. Green
Publication Date:: 04-2009
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: A new calendar year did little to change the tenor of Japanese domestic politics as the public became increasingly frustrated with parliamentary gridlock and the leadership of Prime Minister Aso Taro, whose approval rating plummeted amid a deepening recession. Opposition leader Ozawa Ichiro continued pressure tactics against the government and became the favorite to succeed Aso until the arrest of a close aide damaged his reputation and stunted momentum for a snap election. Aso demonstrated the art of political survival, touting the urgency of economic stimulus over a poll he could easily lose and which need not take place until the fall. In an effort to prevent political turmoil from weakening Japan's global leadership role, the government dispatched two Maritime Self-Defense Force (MSDF) destroyers to participate in antipiracy operations in the Gulf of Aden.
Topic:: International Relations, Economics, and Government
Political Geography:: United States, Japan, and North Korea

94. Decision Factors Affecting Semiconductor Industry Location and the Regional Advantages of Kumamoto Prefecture, Japan

Author:: Kyoko Ii
Publication Date:: 01-2008
Content Type:: Working Paper
Institution:: Walter H. Shorenstein Asia-Pacific Research Center
Abstract:: The objective of this research is to pinpoint the key determining factors that managers in multinational semiconductor firms use to decide upon a location to expand their business. Interviews were conducted with seventeen executives at eight companies, at both the U.S. and Japanese headquarters. Based on these interviews, the author analyzed the data to determine the strengths and weaknesses of Japan's Kumamoto Prefecture, in particular, as a semiconductor investment location. One important research finding is an assessment of these strengths and weaknesses, their importance to foreign executives, and how Kumamoto can capitalize on them in order to attract more business to the region.
Topic:: Economics, Industrial Policy, and Science and Technology
Political Geography:: United States, Japan, Iran, and Asia

95. Social Cohesion in China: Lessons from the Latin American Experience

Author:: Mariano Turzi
Publication Date:: 01-2008
Content Type:: Journal Article
Journal:: The Journal of Diplomacy and International Relations
Institution:: School of Diplomacy and International Relations, Seton Hall University
Abstract:: China's economic development over the last three decades has been dazzling critics and supporters alike. Since the launching of the “Four Modernizations” reform process in 1978, growth has averaged 9 percent annually. As a result, according to IMF data released in July 2007, China is poised to overtake Germany as the world's third-largest economy. As growth has slowed in Europe, Japan, and the US the Chinese economy grew at a staggering rate of 11.9 percent in the second quarter of 2007. The IMF report also pointed out that if exchange rates are adjusted to equalize the cost of goods in different countries (purchasing-power parity) China is already the world's second-largest economy.
Topic:: Economics
Political Geography:: United States, Japan, China, Europe, Germany, and Latin America

96. Der kollektive "Buddenbrooks-Effekt"

Author:: Christoph Deutschmann
Publication Date:: 05-2008
Content Type:: Working Paper
Institution:: Max Planck Institute for the Study of Societies
Abstract:: The paper views the current financial crisis in light of long-term structural socioeconomic changes in advanced industrial societies. In Western Europe, the United States and Japan, the period of economic prosperity after the Second World War led to a remarkable accumulation of wealth among the middle class that had surprisingly little effect on the substantial fortunes of the wealthiest upper class. This affluence gave rise to pension and investment funds emerging as a new type of collective actor in global financial markets, while the economy was marked by increasing instability, declining growth rates and financial crises. The paper tries to clarify the interconnections between these phenomena using the framework of a multilevel analysis that culminates in a model I call the “collective Buddenbrooks effect” (“Buddenbrooks” being a family saga by Thomas Mann): Structural upward social mobility will lead to an increasing imbalance in capital markets, since the volume of financial assets looking for profitable investment will rise as the social reservoir of solvent debtors and promising investment opportunities decline. Advanced industrial economies are thus characterized by a bias towards capital export and excessive financial liquidity, with the well-known consequences of low economic growth rates and the danger of speculative bubbles on global capital markets. The middle class that originally benefitted from postwar prosperity is negatively affected, too. I argue that the current crisis cannot be understood sufficiently without taking this structural socioeconomic background into account.
Topic:: Economics, International Political Economy, International Trade and Finance, Political Economy, and Political Theory
Political Geography:: United States, Japan, and Europe

97. China-Southeast Asia Relations

Author:: Robert Sutter and Chin-Hao Huang
Publication Date:: 10-2008
Content Type:: Journal Article
Journal:: Comparative Connections
Institution:: Center for Strategic and International Studies
Abstract:: Chinese relations with Southeast Asia were overshadowed for most of the quarter by Chinese leadership preoccupations with the 2008 Olympic Games and various crises involving toxic Chinese milk supplies, turmoil in U.S. and international financial markets, leadership uncertainty in North Korea, and the Russia-Georgia war. Although official Chinese media highlighted President Hu Jintao's meetings with Southeast Asian and other world leaders at the Beijing Olympics, he and other top leaders did not travel to Southeast Asia except for the foreign minister's attendance at the ASEAN meetings in Singapore in July. New troubles emerged with Vietnam, notably over oil exploration in the South China Sea. The recent pattern of Chinese, Japanese, and South Korean leaders meeting independent of ASEAN, despite their continued avowals of ASEAN's “leadership” in East Asian regional matters, paused when Japanese officials announced the postponement of a planned summit among the three northeast Asian powers in September on account of the resignation of Japan's prime minister.
Topic:: Development and Economics
Political Geography:: Russia, Japan, China, Beijing, North Korea, and Southeast Asia

98. Regional Monetary Arrangements in ASEAN+3 as Insurance through Reserve Accumulation and Swaps

Author:: O.G. Dayaratna-Banda and John Whalley
Publication Date:: 04-2007
Content Type:: Working Paper
Institution:: Centre for International Governance Innovation
Abstract:: East Asia is witnessing the emergence of an informal monetary system which focuses on self-insurance through own reserve accumulation and co-insurance through swaps. The former is concentrated in a small number of large countries (China, Japan, and Korea), while the latter involves informal monetary cooperation among monetary authorities in a large number of countries. The origins of this system lie in the Asian financial crises, and reflect concerns both to avoid repetition of similar events and any spread of further crises through contagion effects. This paper first characterizes and documents this emerging system describing how it works and what its objectives are, and then discusses its performance, its incompleteness, and assesses the system's ability to move towards deeper integration without adopting a single monetary authority as well as the impediments it faces. What is clear is that this type of system among individual countries is incomplete and falls well short of complete monetary integration, but at present it performs well even if it experiences a number of deficiencies. Most countries seem better off with partial reserve pooling, while incremental gains from higher degrees of pooling in the region tend to be small.
Topic:: Development, Economics, and Regional Cooperation
Political Geography:: Japan, China, Asia, and Korea

99. Bound by a Hidden Agenda: The Birth and Consequences of the Bank of Japan's Quantitative Monetary Easing

Author:: Tetsufumi Arita
Publication Date:: 07-2007
Content Type:: Working Paper
Institution:: Walter H. Shorenstein Asia-Pacific Research Center
Abstract:: For the past five years, the Bank of Japan (BOJ) has employed an unconventional monetary easing policy, called quantitative monetary easing. Under a zero interest rate regime, the BOJ shifted its tool for monetary easing from interest rates to quantity of money, thus providing the money market with much more money than it needs. It is difficult to find evidence that this monetary easing has contributed to the current economic recovery. What we can show is that this quantitative easing diluted the functions of interest rates in the money market, with the following consequences: quantitative easing hid the risks of the huge amount of fiscal debt and supported troubled commercial banks. Hence it helped to prevent both fiscal and financial crisis.
Topic:: Economics, Government, and Political Economy
Political Geography:: Japan and Asia

100. Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States

Author:: Yuji Genda, Ayako Kondo, and Souichi Ohta
Publication Date:: 12-2007
Content Type:: Working Paper
Institution:: Institute for Social and Economic Research and Policy at Columbia University
Abstract:: We examine effects of entering the labor market during a recession on subsequent earnings and employment for Japanese and American men, using comparable household labor force surveys. Previous analyses focus on search theoretic and implicit-contract arguments, which have their strongest effects on more educated workers. We argue that, in a country like Japan which has a dual labor market, there is an additional mechanism that affects mainly less educated workers. Namely, these workers are more likely to be trapped in the secondary sector if they graduate during a recession. We find a persistent, strong negative effect on earnings for less educated Japanese men, in contrast to no long-term effect for less educated American men; also, a substantial part of the effect for less educated Japanese men is attributed to the decreased probability of regular employment. The effect for the more educated group is more or less similar in both countries.
Topic:: Economics, International Trade and Finance, and Markets
Political Geography:: United States, Japan, America, Israel, and Asia

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