The Challenges of the Japanese Economy in the Century XXI

Monograph

Posted: 27 Jan 2020

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

Econographication Virtual Laboratory (EVL); Universidad de San Carlos de Guatemala - Facultad de Ciencias Economicas

Date Written: January 2, 2020

Abstract

The first chapter presents a general explanation of each chapter in this monograph. This monograph is divided into nine chapters respectively. The idea to write this monograph is to show different issues that can affect considerably the Japanese economy performance in the twenty-first century. The second chapter presents how natural hazards have a potentially large impact on economic growth but measuring their economic impact is subject to a great deal of uncertainty. The central objective of our chapter is to set forth a model – the natural disasters vulnerability evaluation (NDVE) model – to evaluate the impact of natural hazards on GDP growth. The model is based on three basic indicators - (i) the natural hazards vulnerability propensity rate (ΔΩ); (ii) the natural disaster devastation magnitude rate (Π); and (iii) economic desgrowth rate (δ). In addition, we apply the NDVE Model to the Northeast Japan earthquake and tsunami of March 2011 to evaluate its impact on the Japanese economy.

The third chapter graphically demonstrates the patterns of economic recession from one of the largest economies in the world, i.e. the U.S. and Japanese economy. This can generate economic waves on different markets (countries or regions). This chapter evaluates the way in which an economic recession from the U.S. economy can simultaneously affect five different markets economic hotspots viz. Japan, China, ASEAN, Latin America and the European Union (EU). To visualize how an economic recession in the U.S. economy can generate economic waves on world economy, it is necessary to apply the inter-linkage coordinate space. Finally, this chapter proposes the use of computer graphical animation, which is based on the construction of a large number of slides joined together through the production of a video. In our case, we will use Windows Microsoft movie maker software to generate the real time effect of these economic waves in the same graphical space.

However, the fourth chapter introduces a new economic model of armed conflicts, the armed conflict economic impact model – ACEI-Model. The ACEI-Model assesses the economic impact of armed conflict in three different stages: (i) diplomatic negotiations stage; (ii) armed conflict stage; and (iii) winners and losers in the post-armed conflict stage. The analysis makes use of new indicators such as economic desgrowth (-δ), armed conflict intensity variables (vi), armed conflict losses (-W), economic wear (W), level of armed conflict tension (T), level of diplomatic negotiations (Dp), and total economic leaking (Lt). We apply the ACEI-Model to evaluate an imaginary armed conflict between China and Japan to illustrate its potential usefulness.

In fifth chapter, we introduce a new indicator of urbanization called the "The Gross City Development Index (GCD-Index)." The GCD-Index calculation is based on the Concept of city integral sustainable development platform. The platform consists of ten Main Structures, which are (i) Main Structure-1: Economic and Finance (production and consumption of goods and services, income distribution, savings ratio, public and private investment, inflation, and banking; (ii) Main Structure-2: Social (social protection coverage); (iii) Main Structure-3; Politics and Law, (iv) Main Structure-4: Technological; (v) Main Structure-5: Environment; (vi) Main Structure-6; Population (labor, education and training, immigration and migration, and unemployment; (vii) Main Structure-7; Infrastructure and Housing (real estate prices and transactions); (viii) Main Structure-8: Income and Poverty in formal and informal sectors; (ix) Main Structure-9: Public Sector (public transportation, security, health, welfare programs, and taxation); (x) Main Structure-10: Others (historical, customs, habits, religion, values, and anthropological). The objective of the GCD-Index is to offer policymakers a new analytical tool to assess urban development from a multidimensional perspective. The GCD-Index is a flexible and straightforward indicator that can be applied to analyze the development of any city. We apply the GCD-Index to study the development of Tokyo, Japan, between 2000 and 2019 to provide a sense of how the index can be used to assess the progress of integrated and sustainable urban development in a megacity.

In the sixth chapter, we attempt to analyze and compare the magnitudes of destruction caused by natural disasters versus socio-economic-political disasters around the world. To do so, we deploy a multi-disciplinary approach that encompasses history, politics, sociology, and economics (Ruiz Estrada, 2011 and 2017). In the methodological discussion, we propose using quantitative and qualitative methods simultaneously to systematically evaluate different type of disasters. In this context, we propose a new analytical tool: “The General Disasters Final Impact Simulator” (GDFI-Simulator). Finally, we apply the GDFI-Simulator to Africa, America, Asia (Japan), Europe and Oceania in the 19th and 20th centuries.

Subsequently, the eighth chapter research will show that is possible the application of the special theory of relativity, general theory of relativity and black holes on international economics and trade. This chapter is divided into three sections. The first section proposes the application of the special theory of relativity by Professor Albert Einstein on economics. This is based on the measurement of the energy of the economics (E). The construction of the energy of the economics (E) is based on two economic variables such as the unemployment growth rate and the technological development speed. The second section will present the general theory of relativity develop by Albert Einstein (1916) on the analysis of international trade. Hence, this great theory of physics can help to explain the behavior of the international trade among nations, at the same time, how a large country with a constant expansion of its international trade mass (D) can generate a strong international trade gravity attraction with the traditional trade partners and possible new trade partners. The third section of this chapter proposes a theoretical framework of the macroeconomic black holes. The idea is to observe “HOW” the macroeconomic black holes can generate an economic desgrowth according to this research. Additionally, the macroeconomic black holes request the uses of a multi-dimensional graphical modeling and mathematical modeling framework respectively. Finally, we apply these different theories of Physics to different countries (such as Japan, China, E.U. and U.S.) to evaluate the international trade behavior from a different angle.

Finally, the eighth chapter attempts to evaluate the impact of Brexit on the Asian markets. At the same time, this chapter is going to test a new index entitled “The International Financial-Trade Exchange Leaking Index (TIFTEL-Index).” Hence, TIFTEL-Index is based on the uses of three main variables behavior follow by: (i) the international trade exchange marginal rate (∆Τ’); the international financial exchange marginal rate (∆σ’); the GDP in real prices growth marginal rate (∆γ). Therefore, the main objective of this research chapter is to compare the trend and vulnerability of the international trade and financial exchange rates Pre-Brexit and Post-Brexit between Asia and Europe.

Keywords: Japan, Japanese Economy

JEL Classification: P51

Suggested Citation

Ruiz Estrada, Mario Arturo, The Challenges of the Japanese Economy in the Century XXI (January 2, 2020). Monograph, Available at SSRN: https://ssrn.com/abstract=3512852

Mario Arturo Ruiz Estrada (Contact Author)

Econographication Virtual Laboratory (EVL) ( email )

Kuala Lumpur
Malaysia
+60126850293 (Phone)
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HOME PAGE: http://www.econographication.com

Universidad de San Carlos de Guatemala - Facultad de Ciencias Economicas ( email )

Ciudad Universitaria Zona 12
Guatemala City, Guatemala city 01012
Guatemala
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HOME PAGE: http://www.usac.edu.gt

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