The paper "Factors that Contributed to the Growth of the Japanese Economy" is a perfect example of a macro & microeconomics case study. Japan is one of the nations that experienced high economic growth after the Second World War. This paper presents an analysis of the factors that can be attributed to the Japanese economy’ s rapid growth. The paper evaluates the role played by the Japanese government in ensuring economic growth and also analyses the role played by the private enterprise. It is notable that while the government was active in providing a favourable environment for economic growth, the private sector was also active through investments that enabled quick economic growth.
Specifically, the role of the government was instrumental in the years immediately after the Second World War, but later, market mechanisms become more important in policy decisions and therefore contributed to phenomenal industrial growth. The paper also seeks to determine whether the model of growth of the Japanese economy can be reproduced, as well as some of its constraints. A comparison of the Japanese model of development with the economic growth model of South Korea is also made. Developments in Japanese economic growth The Japanese economy witnessed considerable growth over the four decades since the late 1940s.
The growth can be classified into four periods: the recovery period (1946-1950), the rapid growth period between 1950 and 1973, the moderate growth period (which includes the bubble age) between 1976 and 1991) and the stagnation period (1992-2003) (Iyoda, 2010, p. 7). However, for the interest of this paper, the periods covered are those in which much economic recovery and growth were witnessed; that is, the recovery period to the rapid growth period between – a period between the late 1940s and the 1970s. Role of government After the Second World War in 1945, the Japanese government started an economic democratisation process with major reforms that were imposed by the General Head Quarter (GHQ).
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