Comparative Economic Analysis of Japan and Italy

Proponents: Lopez, Art Jones Malinao, Jaymark Makinano, Caryl Mondano, Gianne Cielo Otacan, Kiezzyll Jane

Data of GDP Growth Rate (in %) Year Japan 2002 -0.3 2003 2.7 2004 2.9 2005 2.6 2006 2.2 2007 2 2008 -0.7 2009 -5.2 2010 3.9 2011 -0.7 Sources: http://www.indexmundi.com/g/g.aspx?c=ja&v=66
http://www.indexmundi.com/g/g.aspx?v=66&c=it&l=en

Italy 0.4 0.4 1.3 0.1 1.9 1.4 -1 -5.1 1.3 0.4

Comparative Economic Analysis (CEA) of the GDP

Japan had a contraction in its economy during the years 2002, 2008, 2009 and 2011 in achieving negative GDP growth rates while Italy has economic contraction during the year 2008 and 2009. According to Todaros principle, Japan and Italy did not achieve economic growth. Both countries achieved growth rates which are below 5% annual increase.

Year 2002 2003 2004 2005 2006

Data of Unemployment (in %) Japan Italy 5.4 9.1 5.3 8.6 4.7 8.6 4.4 7.7 4.1 7

2007 3.8 6.2 2008 4 6.8 2009 5.1 7.8 2010 5.1 8.4 2011 4.6 8.4 Sources: http://www.indexmundi.com/g/g.aspx?v=74&c=ja&l =en http://www.indexmundi.com/g/g.aspx?v=74&c=it&l =en

Comparative Economic Analysis (CEA) of the Unemployment

Italys unemployment rates during 2002 -2011 are all higher than Japan. Japans unemployment rates are in stable level compared to Italy. According to Schiller, a country should have unemployment rate between 4% to 6 % to achieve full-

employment, where the unemployment is compatible with price stability. Japan achieved full-employment during from year 2002 to 2011 except for the year 2007 where the unemployment rate is below 4 %. Italys unemployment rates from 2002 to 2011 are all higher than the maximum of 6% where full-employment can be achieved. Italy did not achieve full-employment from the year 2002 until 2011.

Year 2002 2003 2004 2005 2006 2007 2008 2009

Data of Inflation (In %) Japan -0.9 -0.3 -0.1 -0.3 0.3 0.1 1.4 -1.4

Italy 2.4 2.7 2.3 2 2.3 1.8 3.4 0.8

2010 -0.7 1.4 2011 -0.3 2.9 Sources: http://www.indexmundi.com/g/g.aspx?v=71&c=it&l=en http://www.indexmundi.com/g/g.aspx?v=71&c=ja&l=en

Comparative Economic Analysis (CEA) of the Inflation

Japan attained deflation from year 2002 to 2005 and from the year 2009 to 2011. On the other hand, Japan achieved stability of prices from the year 2006 to 2008 according to Schillers theory. According to Samuelsons stable price level, Italy

achieved stability of the prices from year 2002 to 2006, as well as 2008 and 2011.

Data of Balance of Payment (in Billions of US dollars)

Year
2002 2003 2004 2005 2006 109.13 132.22 167.27 160.91 165.76

Japan
-9.45 -16.74 -14.28 -28.11 -45.46

Italy

2007 206.46 -48.63 2008 151.17 -77.02 2009 137.20 -65.26 2010 198.95 -77.37 2011 119.56 -66.36 Sources: Japan BOP http://books.google.com.ph/books?id=o_Tx8Cf3h3sC&pg=PA528&dq=Balance+of+pay ments+japan++2005++%22Analytic+presentation,20022009%22&hl=en&sa=X&ei=OQMPU7r0C4m5iQeShYH4Dw&ved=0CCsQ6AEwAA#v=onep age&q=Balance%20of%20payments%20japan%20%202005%20%20%22Analytic%20pre sentation%2C2002-2009%22&f=false http://books.google.com.ph/books?id=FxFwAgAAQBAJ&pg=PA534&dq=Balance+of+pay ments+japan+2012+%22Analytic+presentation,20052012%22&hl=en&sa=X&ei=suAOU4_BEsqfkwWe1YGoDg&ved=0CCwQ6AEwAA#v=onep age&q=Balance%20of%20payments%20japan%202012%20%22Analytic%20presentatio n%2C2005-2012%22&f=false
Italy BOP http://books.google.com.ph/books?id=o_Tx8Cf3h3sC&pg=PA514&dq=Balance+of+pay ments+italy++2005++%22Analytic+presentation,20022009%22&hl=en&sa=X&ei=VgMPU6CTG8H6iQey6YHIBg&ved=0CDYQ6AEwAA#v=onepa ge&q=Balance%20of%20payments%20italy%20%202005%20%20%22Analytic%20prese ntation%2C2002-2009%22&f=false

http://books.google.com.ph/books?id=FxFwAgAAQBAJ&pg=PA522&dq=Balance+of+pay ments+italy+2012+%22Analytic+presentation,20052012%22&hl=en&sa=X&ei=geEOU9KSCYm8kAXsmYGYDA&ved=0CCoQ6AEwAA#v=onep age&q=Balance%20of%20payments%20italy%202012%20%22Analytic%20presentation %2C2005-2012%22&f=false

Comparative Economic Analysis of the Balance of Payments

Things to take note in answering the CEA of BOP: 1. Analysis should be based on BOP data presented at the previous page. 2. Compare the BOP condition of the two countries. 3. Do not plagiarize.

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Summary Summarize the comparative economic analysis.