CSSN-Analysis of the Export Promotion Effect of Abenomics　　　

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Analysis of the Export Promotion Effect of Abenomics　　　

Author : Source : Japanese Studies No.1(2014) 2014-01-07

Abstract: The core purpose of the first arrow of Abenomics, the "bold monetary policy", is to achieve export growth through the yen’s depreciation. According to the current situation, the depreciation of the yen does not yield substantial export growth; instead, with small elasticity of demand for import, Japan's trade balance is deteriorating. Besides the influence of "J curve effect ", that phenomenon is due to the fact that economic recovery of Japan’s major trading partners such as Europe and China remains weak, as well as the impact of disputes over the Diaoyu Island on the Sino-Japanese economic relations. With the ongoing economic recovery of U.S. EU and China, and the implementation of the second and the third arrows of Abenomics, it can be foreseen that after an adjustment period of about one year, the effect of Abenomics on export growth may gradually emerge.

Editor: Yu Hui