Japan In Global Imbalance

Since the 90's of the 20th century, the world economy has entered a new round of imbalance, and Japan's position in global imbalance has also changed obviously. Considering the similarity between Japan and China's economic development model and their close economic ties, the study on Japan's imbalance in has a clear reference to China.The thesis examines Japan's position in both global current account imbalance and capital account imbalance, as well as Japan's position changes in the two accounts. According to the studies above, the thesis analyzes causes for the formation of Japan's position and changes in global imbalances. We find that Japan's economic development pattern has a fundamental influence on its position in global imbalance, while the subject diversification of the world economy and international production transfer make the external and direct causes.Then, the thesis calculates VS value and VS ratio of Japan in China's Manufacturing export to U.S., and constructs an empirical model to research into the impact of Japan's international production transfer on its position in U.S.'s current account imbalance. We find if the proportion of intermediate goods from Japan in China's manufactured goods export to the U.S.increase by 1%, Japan's proportion in the U.S. trade deficit will decline by 1.58%. Then, this thesis analyzes the the impact of financial crisis on Japan, the causes of impact and Japan's response.At last, the thesis proposes policy recommendations to improve Japan's international balance of payment. To overcome the deadlock Japan faces now, the key and fundamental step is the overall change of Japan's economic development pattern.