Abstract
The concept of international competitiveness comprises various factors, providing a number of aspects. The present work evaluates the competitiveness of the Japanese manufacturing industries in terms of productivity. The growth of the physical labor productivity in the Japanese manufacturing industry has been slowed down since the 1970s and has been recording negative rates since 1990. In contrast the American manufacturing industries, after the sluggish 1970s, have improved the physical labor productivity in the 1980s by reducing the labor input and show a significant growth since 1990. The value-added labor productivity in Japan, as measured by purchasing power parity, was found to be 74% that of the U.S. in 1991. These comparisons indicate clearly that the international competitiveness of the Japanese manufacturing industries is declining.
