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WhyareAsianeconomiescompetitive?
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developmentismakinguseofcompoundproductivityreserves.9Inbothcasesthe
rateofgrowthcanbestillincreasedbyuseofmentionedearlierfactors.Jumpfrom
onestagetoanother,thehigheroneispossiblebutitleavestheexistingreserves
unutilizedandcreatesconditionstoutilizereservesavailableathigherlevelsof
development.Thisfindingshowsthataccelerationofgrowthisalwayspossiblebut
skippingsomeoftheconsecutivestagesofdevelopmentslowsdowntheuseof
reservesavailableateachstage.10Theuseofthesereservesisnecessaryasotherwise
theeconomywillfaceproductivitylossesandingeneralmorecostlyandless
productivegrowthrates.11
Currentlypartofthecompetitivenessofthetwoeconomies(similarlyasinthe
restoftheworld)hasbeenachievedbylowvaluesofthedollar,towardswhichthe
valueofeachcurrencyisweighed.Thisresultsfromthefactthatinmostcasesthe
appreciationofnationalcurrenciesisslowerincomparisonwiththerealvalue
changesoftheexchangerates.Suchasituationtakesplaceespeciallyinconditions
whendevaluationofthe"basic”currencyhasastrongimpactonsalesoftheexporter
whosecurrencyshouldbeaccordinglyappreciated.
3.Japananditscompetitiveness
Japanisrankedasthesixthcompetitiveworldeconomyandshowsimprovementin
therankinglistsincomparisontothelasttworeportsonGlobalCompetitiveness.
Thispositionisachievedinthetotalof133,whichadditionallyincreasesthevalue
ofsuchinternationalcomparisonswhicharepreparedaccordingtothesame
methodology.Japanhas127.2millionpopulation.TheJapaneseGDPintheUSDis
5,068.1bn,whiletheGDPpercapitaisrelativelyhighandreachesUSD39,731.The
shareofJapanesemarketintheworldconsumermarketisalsorelativelyhighasfor
asingleeconomy,reaching6.0%inPPP.
TherateofgrowthofGDPintheJapaneseeconomyisgrowing,neverthelessthe
rateofgrowthsince1997/1998islowerthaninremainingadvancedeconomies.This
isresultedbythreerelativelybigturbulencescausingseriousslowdownsinthe
Japaneseeconomy.ThiswastheslowdowncausedbytheAsiancurrencycrisisin
1997/1998,adepressionontheturnofcenturies,depressioncausedbythefinancial
crisis2007/2008.TherearealsosomesignsthattheJapaneseeconomyisapproaching
anewslowdownin2011.Japaneseeconomyisstronglyburdenedbyhugebudget
deficit(–7.9%ofGDP).Continuousbudgetdeficitresultsinhugepublicdebtwhich
reaches180%ofGDP.Atthesametime,theJapaneseinterestrateisoneofthe
9D.Sourie,ProductivityinChinaTwiceasGoodasIndia,PTI,NewYork2006.
10P.Krugman,TheGreatUnravelingLoosingourWayintheNewCentury,WW.Northon&
Company,2003.
11C.A.Holz,MeasuringChineseProductivityGrowth1952-2005,HongKongUniversityof
Sciences&Technology,2006.