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This paper looks at the role of textile exports in Japan and China's economic development in the period of 1868-1930 as a major explanation for the ' Little Divergence' between the two countries in the context of the ' Great Divergence' between Europe and Asia. Because of textiles' large weighting in proto-industrialization gross domestic product ( GDP), we postulate that China's initial 20-year lag in textiles vis-à-vis Japan turns out to be fatal for its industry and that it eventually ordains totally different development patterns for the textile industry in the two countries, which ultimately led to different growth patterns for the overall economy. Although both countries saw rapid growth of textile exports, the nature of those exports and the entailed position of each country in the industry value chain of trade were quite different. We then use Granger causality tests to show that in one case ( Japan) it is in support of the export-led-growth hypothesis ( ELG) while in another ( China) it is not. Our study then also explains why Japan's industrial revolution took place much earlier than China's. [ABSTRACT FROM AUTHOR]

The paper presents an analysis of the economic relationship between the two most important economies in Asia. Over the last decades, the Chinese and Japanese economies have become more economically interdependent, a development which will, in the long run, impact the countries' political relationship. The paper seeks to answer the question: How can China and Japan gain from the current economic situation, further enhance their relationship and increase their synergies for regional economic development? Data on trade and Foreign Direct Investment are used in combination with primary data from interviews with Japanese and Chinese companies on how they perceive the current business situation and future potential. The result of the data analysis shows that the countries have much to gain from their economic interdependence. The firms see great potential in their respective markets but are concerned about political turbulence. Three possible scenarios for the future economic relationship are presented, including fierce competition on all markets and a leveraging of resources for mutual development between Chinese and Japanese companies. [ABSTRACT FROM AUTHOR]

Despite its role as a driver of global economic growth through the 1970s, in recent decades the rise of China has seen the international importance of Japan's economic performance recede from the public discourse. This is notwithstanding its continuing key role as economic partner to both industrial and developing countries and changes in its economic performance that would otherwise be a matter for global concern. In particular, the tendency for the Japanese economy and its external trade to stagnate not only has immediate consequences for global performance but also foreshadows a path to industrial transition for other key Asian economies. This paper reviews quantitative studies of Japan's performance. It identifies a paucity of results addressing global implications and suggests new research in this direction. [ABSTRACT FROM AUTHOR]

Assesses the economic status of several countries. Information on population and income stagnation of Japan and Korea; Cost and benefits of Korean unification; Issue on unemployment in Germany; Economic growth of China.