Prospects for the development of the Japanese economy
Subject. Economic relations that determine the development of the Japanese economy. Topic. The article analyzes modern aspects of the development of the Japanese economy, in particular, the dynamics of such an indicator as gross domestic product. The Japanese model of attracting foreign direct investment and its features are considered. An empirical study of the impact of factors on the knowledge - intensive sector in Japan was also conducted using a model with fixed and individual effects. Purpose. The purpose of the scientific article is to study the problems and prospects of the development of the Japanese economy. Identifying the features of the country's economy, its place in the structure of the world economy, identifying problems and determining the prospects for the development of the Japanese economy. Methodology. Methods of logical and comparative analysis. Results. To address the slowdown in the economy, the government of Japan has initiated structural reforms to ensure the continued healthy functioning of the economy. Although Japanese stocks are still as promising as they are risky, the country's rapidly growing economy promises to finally stabilize in the near future. As a result, it was concluded that foreign direct investment and selffinancing are important in the forecast of the knowledge - intensive sector of the Japanese economy. Applicationarea. Japanese economy. Conclusions. A country that has not yet got rid of the prejudice against foreign workers, willy - nilly prepare for their mass presence not only in the niches of the labor market, ignored by the Japanese as not prestigious (meaning, for example, jobs in construction or in some sectors of the service industry). The outstripping growth in the demand for highly qualified foreign specialists for the new, socalled electronic economy, has become a reality today. As for structural changes, the recovery of the private sector of the economy, especially in the manufacturing sector, is already a reality. The problem is that the public sector still has too much debt, and has not undergone major structural changes. Japan needs to put its fiscal policy in order to adequately address both domestic and external economic problems. However, the rapid growth of the country's elderly population means that increasing social spending will delay the implementation of fiscal reforms, and deflation still holds the country's economy in its grip.