9In the long run, despite the current recession and despite expected future
labour shortages, it is likely that the Japanese economy will grow at an average rate of above 3% per year for the next few decades. Such economic
growth may be achieved by government policies to encourage shifts in the
industrial structure so as to place stronger emphasis on value-added commodities, expansion of offshore sourcing and substantial investment in
infrastructure and housing. This will imply, among other things, that:
Lessons and Opportunities for Canada
|imports of both manufactured and nonmanufactured goods will
|Japanese FDI will continue to increase, given that the ratio of overseas
production to total production is still quite small for Japanese manufacturers compared to their U.S. and German counterparts (though it
is expected that a significant share of the future FDI will flow to Asia);|
|the increasing income level of Japanese households will provide markets for differentiated products; and|
|raw material imports for industry use will continue to decline, but
material imports for housing (e.g., lumber), public construction projects and household items (clothing and furniture) will continue to
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Japanese Economic Policies and Growth:Implications for Businesses in Canada and North America.
Contributors: Masao Nakamura - Author, Iian Vertinsky - Author.
Publisher: University of Alberta Press.
Place of publication: Edmonton, Alta..
Publication year: 1994.
Page number: 203.
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