The recent behavior of Japanese imports: A disaggregated analysis

This study investigates the factors behind the recent surge in Japanese imports. It finds evidence of a rise in the long-run income elasticity of total real imports in the mid-1980s. The increase derives from similar behavioral changes at the end-use level and, to a lesser extent, major compositional shifts in the structure of Japanese imports. The behavioral changes in aggregate and end-use imports are likely to reflect important structural developments in the Japanese import market and have potentially significant implications for the impact of macroeconomic policies in Japan on future import performance.