The evolution of this grand national design reform in the Japanese economy since the 1956 White Paper on the Economy, which stated, “It is no longer postwar,” requires evaluation from various perspectives. This chapter aims to trace the subsequent transition of the Japanese economy. When comparing the international competitiveness of an industry by comparing the average price of its products, the challenge lies in calculating the differences in the industry’s production technical efficiency and the international differences in the prices of the input factors of production as comparable indicators. Production factors include labor, capital, raw materials, and other elements. The structure of each factor input is determined by technology with technological advancements. Consequently, given each production factor price, it is necessary to aggregate the productivity of each production factor. Total Factor Productivity (TFP) is a productivity measurement concept that evaluates the overall efficiency of all input factors. This chapter will evaluate changes in the international competitiveness of industries between Japan and the US from 1960 to 1990.

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High Growth After “No More Postwar” in Japan

  • Masahiro Kuroda

摘要

The evolution of this grand national design reform in the Japanese economy since the 1956 White Paper on the Economy, which stated, “It is no longer postwar,” requires evaluation from various perspectives. This chapter aims to trace the subsequent transition of the Japanese economy. When comparing the international competitiveness of an industry by comparing the average price of its products, the challenge lies in calculating the differences in the industry’s production technical efficiency and the international differences in the prices of the input factors of production as comparable indicators. Production factors include labor, capital, raw materials, and other elements. The structure of each factor input is determined by technology with technological advancements. Consequently, given each production factor price, it is necessary to aggregate the productivity of each production factor. Total Factor Productivity (TFP) is a productivity measurement concept that evaluates the overall efficiency of all input factors. This chapter will evaluate changes in the international competitiveness of industries between Japan and the US from 1960 to 1990.