Order Description
doing either question4 or question6 around 1000-1200words (relevance reading are provided)
thank you
Econ 343 East Asian Growth and Trade
FC 2016

Assignment: Short Essay
Due date: Friday 7 October 2016.

The essay will be marked out of 100, and is worth 20% of the final grade.

Write a short essay (approximately 1000-1200 words) on one topic from the list below.

Referencing in the essay: any standard referencing method may be used.

Notes on access to references
Italicised Publications are accessible via the Library’s E-Journals Facility
Items with the indication posted on Canvas were either posted for the tutorials in Weeks 7 and 8, or have been newly posted with a prefix such as A2, where the number indicates the relevant question number.
Website references or links are given for other publications
1. Explain why “fiscal sustainability” is a major challenge for economic policymaking in Japan. What are the options for addressing the challenge, and what are the likely consequences of failing to address it successfully?

Hoshi, T. and Ito, T., “Is the Sky the Limit? Can Japanese Government Bonds Continue to Defy Gravity? (Asian Economic Policy Review, 8, 2013, 218-247)
Hoshi, T. and Ito, T., “Defying gravity: can Japanese Sovereign Debt Continue to
Increase without a Crisis?” (Economic Policy, January 2014, 5-44)
Doi, T., Hoshi, T. and Okimoto, T., “Japanese Government Debt and Sustainability of Fiscal Policy” (Journal of the Japanese and International Economies 25, 2011, 414-433)
Ito, T., “Sustainability of Japanese Sovereign Debt”, Ch. 2 of Ito, T. and Parulian, F. (eds.) Assessment on the Impact of Stimulus, Fiscal Transparency and Fiscal Risk (ERIA Research Project Report 2010-1, Economic Research Institute for ASEAN and East Asia, Jakarta, March 2011); available at http://www.eria.org/publications/research_project_reports/assessment-on-the-impact-of-stimulus-fiscal-transparency-and-fiscal-risk.html
Jones, R. S. and S. Urasawa (2013), “Restoring Japan’s Fiscal Sustainability”, (OECD Economics Department Working Papers, No. 1050, OECD, Paris, 2013) (posted on Canvas), also available at
http://www.oecd-ilibrary.org.ezproxy.auckland.ac.nz/economics/restoring-japan-s-fiscal-sustainability_5k46cvtkbf33-en
Sugimoto, K., “A Study on Fiscal Policy Challenges in Japan” (Policy Research Institute, Ministry of Finance, Japan, Public Policy Review Vol 6 No 4, April 2010) (posted on Canvas)
Tokuoka, K., “Intergenerational Implications of Fiscal Consolidation in Japan” (IMF Working Paper No WP/12/197, International Monetary Fund, Washington DC, August 2012) (posted on Canvas), also available at
https://www.imf.org/external/pubs/ft/wp/2012/wp12197.pdf
Tokuoka, K., “The Outlook for Financing Japan’s Public Debt” (IMF Working Paper No WP/10/19, International Monetary Fund, Washington DC, January 2010) (posted on Canvas), also available at
http://www.imf.org/external/pubs/ft/wp/2010/wp1019.pdf
Oshio, T. and Oguro, K., Fiscal Sustainability under an Aging Population in Japan:
A Financial Market Perspective Policy Research Institute, Ministry of Finance, Japan, Public Policy Review, Vol.9, No.4, September 2013, also available at
https://www.mof.go.jp/english/pri/publication/pp_review/ppr023/ppr023g.pdf
Oshio, T. and Oguro, K., “How to Solve Japan’s Fiscal Sustainability Issues”, East Asia Forum, 1 April 2015, available at

Unayama, T. and Cashin, D., “Estimating the Harm Japan’s Next VAT Rate Increase will Inflict on the Economy”, Research Institute of Economy, Trade and Industry (RIETI), 20 June 2016, available at
http://www.rieti.go.jp/en/columns/v01_0061.html
2. Briefly outline the problems facing the Japanese agricultural sector. Explain the view that trade liberalisation could contribute positively to revitalisation of the sector, and also how liberalisation of Japan’s agricultural trade, including through the TPP, has so far been for the most part successfully resisted. What alternative avenues of agricultural reform are being pursued, and how effective are they likely to be?

Whittaker, H., Scollay, R. and Gilbert, J., “TPP and the Future of Food Policy in Japan” (Working Paper No 13-01, New Zealand Asia Institute, Auckland, May 2013), available at
http://docs.business.auckland.ac.nz/Doc/Draft-Paper-6-130517-2.pdf
Godo, Y., “The Puzzle of Small Farming in Japan” (Asia Pacific Economic Papers, No 365, ANU Canberra, 2007) available at
https://crawford.anu.edu.au/pdf/pep/apep-365.pdf
Yamashita, K., “Food and Agriculture Problems for Japan and the World in the Twenty-first Century”, (Asia-Pacific Review Vol 13, No 1, 2006 pp1-15)
George Mulgan, Aurelia, “Where Tradition Meets Change” Japan’s Agricultural Politics in Transition” (Journal of Japanese Studies, Vol 31 No2 2005, pp261-298)
Honma, M., “WTO Negotiations and Other Agricultural Trade Issues in Japan” (World Economy Vol 29 No 6 June 2006 pp697-714)
Jones, R. S. and Kimura, S., “Reforming Agriculture and Promoting Japan’s Integration in the World Economy”,OECD Economics Department Working Papers, No. 1053, OECD, Paris, 2013 (posted on Canvas), also available at
http://www.oecd-ilibrary.org.ezproxy.auckland.ac.nz/economics/restoring-japan-s-fiscal-sustainability_5k46cvtkbf33-en
George Mulgan, Aurelia, “Japan’s FTA Politics and the Problem of Agricultural Trade Liberalisation” (Australian Journal of International Affairs Vol 62 No 2, June 2008, pp164-178
Yamashita, K., “Towards a Globally Competitive Agriculture: Leveraging Quality to Generate Exports” (Nihon Keizai Shimbun, 10 June 2011). available at
http://www.rieti.go.jp/en/papers/contribution/yamashita/80.html
Kawai, M. and Urata, S., “Changing Commercial Policy in Japan During 1985-2010” (Asian Development Bank Institute Working Paper No 253, Tokyo, November 2010), available at
https://www.adb.org/publications/changing-commercial-policy-japan-during-1985-2010
George Mulgan, Aurelia, “Japan’s Entry into the Trans-Pacific Partnership: Domestic Priorities and Regional Dynamics” (National Bureau of Asian Research, Commentary, 12 July 2013), available at
http://www.nbr.org/research/activity.aspx?id=349
George Mulgan, Aurelia, “Can Abe’s Third Arrow Pierce Japan’s Agricultural Armour?” East Asia Forum, 6 April 2014, available at

Hori, C., “Ongoing Agricultural Reforms Led by the Abe Administration”, Mizuho Research Institute Ltd, 10 February 2015 (posted on Canvas)
George Mulgan, Aurelia, “Japan’s Agricultural Reforms Watered Down but Still Significant”, East Asia Forum, 7 May 2015, available at

Yamashita, K., “Evaluating the Trans-Pacific Partnership Pact”, Research Institute of Economy, Trade and Industry (RIETI), 16 October 2015, available at
http://www.rieti.go.jp/en/columns/s15_0011.html
George Mulgan, Aurelia, “What Does the TPP Mean for Japanese Agriculture?” East Asia Forum, 19 November 2015, available at

Urata, S., “Trans-Pacific Partnership Agreement as a Vehicle for Revitalizing the Japanese Economy and Rebuilding the World Trade Regime”, Research Institute of Economy, Trade and Industry (RIETI), 27 October 2015, available at http://www.rieti.go.jp/en/columns/s15_0014.html
George Mulgan, Aurelia, “Japan’s TPP Agriculture Spending a Return to Business as Usual”, East Asia Forum, 8 January 2016, available at

3. Outline the main features of China’s so-called “new growth model”. Explain why this “new growth model” inevitably implies a lower growth trajectory than under the previous “growth model”. Briefly review progress in the transition to the “new growth model”. Explain the risks posed to growth in the short to medium term by the potential outcome of the current credit boom in China, and in the longer term by the continued existence of large numbers of “zombie firms” associated among other things with incomplete SOE reform. Briefly discuss the policy options open to China to address these risks.