learning from the japanese economic miracle: what factors lead to economic growth?
TRANSCRIPT
Learning From the Japanese Economic Miracle: What Factors
Lead to Economic Growth?
Japan After World War II
• Most of Japan’s major cities were severely damaged.
• About 3 million Japanese died.
• Many industrial factories were severely damaged or destroyed.
Japan’s Miracle Economic
• Post WWII, Japan soon became an economic power.
• No nation, up until the time, had seen their income and production rise faster than Japan between 1950-1975.
• Why? • What leads to
Economic Growth?
Note the Economic Growth in Japan from 1950 – 1975.
Japan
United States
Factors that Lead to Economic Growth and increased productivity
1. Investment in capital goods, research and technology.
2. Investment in human capital: education and skills.
3. Saving and investment4. Public policy: free trade and competition
INVESTMENT IN CAPITAL GOODS: RESEARCH AND TECHNOLOGY
TECHNOLOGICAL PROGRESS
Shinkansen: High Speed Rail Line: 186 mph
Investment in Human Capital: Education
The Japanese are among the world’s best educated population.
Public Policy: Promoting competition, property rights, and free trade.
Toyota Honda
Japan Today
BIBLIOGRAPHY
Murphey, Rhoads. East Asia: A New History (4th Edition). New York: Longman, 2006.
Mankiw, Greg. Principles of Economics. (4th Edition) USA: Thompson South-Western, 2007.