Its rates of both human and physical capital

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Unformatted text preview: lation reached 20 per cent. Yet, the next decade and a half saw the elevation of Japan to the status of the OECD’s most competitive economy, thanks to its manufacturing successes. Indeed, for one brief moment, in 1989, Japan’s per-capita income (measured in dollar terms) was the world’s highest (bar only that of Switzerland). Thus, while today’s circumstances do not look very promising, one must recall that they did not look particularly promising in 1953 or in 1974. And Japan still has underlying strengths in many areas. Its rates of both human and physical capital formation are among the highest (if not the highest) in the world. The volume of its R&D expenditure is equally impressive. It can boast an enviable degree of social consensus, buttressed by a relatively equal pattern of income distribution. It still has an abundance of world-beating firms and technologies, etc. What it most lacks today is confidence in itself. Should that change, the relatively pessimistic outlook here outlined, could well be transformed. REFERENCES Aoki, M. (1988), Information, In...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.

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