Is Trade Between The United States And Japan Off Balance?

Document Type

Article

Publication Date

9-1-1994

Published In

Finance And Development

Abstract

This article challenges the popular notion that Japanese producers and the Japanese government dump cheap goods on Western countries to run up huge trade surpluses. No evidence of such predatory behaviour on the part of Japanese industry or government was discovered in two recent detailed studies by the author of Japanese trade, with particular reference to the United States. The trade surpluses are a reflection of higher savings and investment rates in Japan.

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