A Study on the Overseas Effects of Japan's Public Investments

Abstract

Since the mid of 1980's Japan's import has dramatically increased as a result of the high rise of Yen. During the same period Japanese public investment has also been remarkably increased for many reasons (both political and economical). These trends may cause that Japan's public investments, that are usually considered as purely internal politics, have influences on overseas countries. In this study an operational I/O and trade model is made to evaluate the domestic and the overseas effects of 1990 and 2005 Japanese public investments. As a result, a few of Japan's public policies, such as cost reduction of public construction by using foreign materials, contribution to international environmental cooperation, domestic job creation and so forth are found to be trade-off to each other.