A Competitiveness Analysis of the US-Japan Trade Relations, 1985-1995

Abstract

The US trade deficit with the rest of the world rose during the 1985-1995 period and the trade deficit with Japan accounted for the major share of the overall US trade deficit. This article provides measures of US trade deficits with Japan, offers an analysis of the measures of competitiveness, and discusses some macro-level factors which seem to have contributed to the large US trade deficit with Japan.