A Report On Growth Of Japan From The Post War Period

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A report on growth of Japan from the post war period to present This report explores the rapid growth in Japanese economy after the Second World War and how the growth would affect the Gross Domestic Product. The Solow Growth Model was used to explain the catching up theory on Japan’s economy and showed ways to recover the economy after the disaster in 2011. Background Japan is the second largest developed economy and the third biggest in the free market economy among the world. Facing the intense competition, Japan decided to transform and focus their industry from agriculture and low-tech manufacturing to high-technology and precision goods (e.g. optical instruments and hybrid vehicles) sectors in 1970s to resolve the on-going crisis. Japan had become a wealthy country and moved from a less developed country into a more developed country by the end of 1980s and successfully transformed itself into a high-technology region in 1990. Hence they have the largest electronics industry in the world. Japan’s economy is well known for its efficiency and competitiveness in exports sectors. However the productivity is lower in segments such as agriculture, distribution and services. (Blomstrom et al., 2000) After World War II, Japan had a strong economic growth in which their economy experienced a period of rapid growth as Japan implemented various political and economic reform measures. After 1958, the government began to guide the organisations’ production focus on automobiles,
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