Abenomics and Active Pacifism: How Abe's Age Influenced the International Business

Abenomics and Active Pacifism: How Abe's Age Influenced the International Business

Vittorio D'Aleo (Università degli Studi di Messina, Italy), Giacomo Morabito (Università degli Studi di Messina, Italy), Walter Vesperi (Università degli Studi di Messina, Italy), Roberto Musotto (Università degli Studi di Messina, Italy), Davide Di Fatta (Università degli Studi di Messina, Italy) and Salvatore Lo Bue (Università degli Studi di Messina, Italy)
DOI: 10.4018/978-1-5225-1031-4.ch002

Abstract

Against deflation and stagnant growth in 2013 Abe and his ministers launched a mix of fiscal and monetary policy and structural reforms but these do not appear of successful for the principal economic indicators. Japan recorded a negative GDP trend rate range from 1.6% by 2013 to -0.1 in 2014. Some of the major competitiveness indices of the World Bank showed a negative trend. Nevertheless, the abenomics represents an important development not only for Japan and East Asia but an example of different way for the entire world. The adoption of a Keynesian approach represents a breaking political, intellectual and economic with the opinions that have dominated public discourse in recent years, especially in Europe. Japan is performing rearmament; this could mean that Japan would employ a new international role. The aim of this study is focus on the economic and geopolitical impact that could have the new Abe's “active pacifism”. Objective of this analysis is examine the economic prescription by Abe and his possible long-term impacts on the international economy.
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Introduction

With a population of 127 million and measured on a Purchasing Power Parity (PPP) which adjusts for price differences, Japan in 2015 stood as the fourth-largest economy in the world after China (which surpassed Japan in 2001) and India which eclipsed Japan in 2012 (CIA Factbook, 2016). The Japanese economy remains one of the most solid and developed in the world. The Shinzo Abe government has promoted a growth policy aimed at bringing the country out of a long period of economic stagnation. Although there are still different tariff and non-tariff barriers-to-entry that make Japan an atypical protectionist country, the local legal system does not provide restrictive or discriminatory law against foreign entrepreneurs except for a few sectors (e.g., agriculture, leather, and mining sectors strategic for national security). A very high number of non-written laws governing trade relationship ensures the high solvency of loans, offering prospects for long-term growth. The gradual relocation of activities to trans-border promotes policies that are intended to boost Foreign Direct Investment (FDI), allowing domestic growth for the Tohoku reconstruction. The “Special Reconstruction Areas” provide tax breaks and streamline bureaucracy for companies which can count on the rest of the national territory on an excellent infrastructure network and efficient services and highly qualified local staff.

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