An Analysis of Japan’s Economic Development: Lessons for China

Japan has played an important role in the global economy for several decades. This study comprehensively analyzes factors contributing to Japan’s economic development using World Bank data and both expenditure and value-added approaches of gross domestic product measurement. Personal consumption and investment contributed the most to Japan’s economic growth in the expenditure model, while the labor rate and service industry productivity were the most important in the value-added model. Further, this study examines changes in these economic factors to explore their impact on Japan’s economy. Finally, this paper discusses lessons for China based on Japan’s experiences.