1990 Reports

Japan's role in Asia-Pacific cooperation: Dimensions, prospects, and problems

Lincoln, Edward J.

Japan's relationship with the world and especially with the Asia-Pacific region is changing rapidly. These shifts hold both promise for closer and more productive interactions as well as concerns over the possible exclusive nature of the evolving relationships. The cause of the changes come from the macroeconomic developments considered in Dick Nanto's paper--developments that have produced large net capital outflows and a strong appreciation of the yen. The purpose of this paper is to explore Japan's position in the development of trade and investment ties in the Asia-Pacific region, review the changes now taking place in Japan's relationship toward these countries, and provide some speculation on future developments.