Learning From the Japanese Economic Miracle What Factors

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. United States Japan

Link to Gapminder: Click Here.

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 investment 4. 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 (4 th Edition). New York: Longman, 2006. Mankiw, Greg. Principles of Economics. (4 th Edition) USA: Thompson South-Western, 2007.