ABSTRACT
Exports have played a vital role in Japan's economic performance throughout the postwar period. In terms of balance of payments, a sharp contrast can be observed between the growth of the Japanese economy during the years leading up to the early 1970s and the years since then. In the latter period, Japan's exports continued to increase rapidly, leading to huge current-account surpluses and a widening trade imbalance with much of the world. By contrast, during a decade and a half following the early 1950s, Japan suffered chronic trade deficits and a shortage of foreign exchange reserves. Particular attention is paid in this chapter to the earlier period, when the balance-of-payments situation was perceived as limiting economic expansion.
