External Adjustment and the Strong Yen: Recent Japanese Experience

Revisiting Japan's External Adjustment Since 1985

“…Other studies, however, suggest that the Japanese real external balance responded as expected in 1985 and 1986 to the appreciation of the yen. Corker (1989), in a model-based study of the Japanese external balance, found that developments in 1986 and 1987 were broadly consistent with estimated relationships, and that the slow adjustment of the nominal balance was due to J-curve effects. A study by the Bank of Japan (1989) indicated 1975 1976 1977 1978 1979 1960 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1967 1988 1989 1990 1991 1992 Yen per US.…”

Japan: Selected Issues

“…This is, however, a direct consequence of the use of an index of world non-oil imports as the foreign activity variable as opposed to the use of a weighted average of partner country real GDP in other studies. 5/ I/ The present model is based on Corker (1989). For a discussion of the conventional determinants of trade flows see Goldstein and Khan (1985) .…”

An Overview of the Japanese Distribution System: The Case of the Automobile Industry

“…Among the factors that helped reduce the surplus was an increase in Imports by Japan. Petri (1990) showed that since 1987, Japan's trade imports Increased 10 to 20 percent ahead of the historically estimated import functions Corker (1989) and since 1985, the sensitivity of Imports to the relative imported goods prices increased significantly. Baldwin (1988) explained such an unusual increase In Japan's imports by demonstrating that the prolonged and large appreciation of the yen since 1985 encouraged foreign firms to establish associated new sales-distribution networks, which increased Japan's imports of their products to a large extent.…”