And Its Lead Is Growing
at its current rate, south korea will most likely go through its own version of the lost decades before managing to surpass japan's gdp per capita. The problem is that SK follows the same economic model as Japan and has a faster aging population than Japan does. Their property bubble is also at the brink of collapse from the look at recent development especially in regards with the cheonse market. At the end of the day, the definition of insanity is doing the same thing over and over and expecting different results
It's probably too anecdotal, not academical, but I happen to be in Seoul this weekend for the first time in... 20 years. I can feel that the life in Korea (especially in Seoul) is as good as in Japan. The price level is still slightly below Japan's level, but the lifestyle is almost identical (or could be better). I can easily foresee that Korea's nominal GDP per capita can be higher than Japan's in the next few years. (it also depends on how JPY will behave, too)
Maybe japanese companies opening factories overseas have the biggest responsibility for this. They have lost jobs in Japan , decreasing income also japanese GDP.
Are there deeper causes for this that go beyond technical/policy reasons (e.g. keeping the yen weak for a long period of time)? Is there something wayward about Japanese society?
It is difficult to understand how the adjustments are done. GDP per capita reached 35,000 USD last year and is here at 42,000. Can you share the details? Did you adjust also the Japanese one with the same methodology? Details would be interesting
I thought as much. This raises some interesting questions about the importance - or lack of importance if you will - for the long run theory of productivity growth that is basically driving the slow steady falloff in per capita income growth for Korea and earlier Japan. It would seem to me that the financial sector corrections are transitory, not permanent.
If North Korea is going to join with South Korea into a union, Japan will be severely screwed under a united Korea. I can see this Korea will also surpass Japan in all terms of GDP. This Korea won't fear of resources shortage due to borders with China-Russia. Japan will be extremely damned because of its geopolitical position and a history of poor diplomacy against its neighbors. If Japan is going to become a meatshield for the American Empire within a few years, then no one in Asia will lend a hand to solve Japan's shortages if China blockades from Taiwan straight.
To me the most interesting and intriguing fact revealed by the graph on growth in per capita income is the downswings in oth the Korean and Japanese series between 1995 and 2000, the reverse of the upswings that occurred in the US and the EU. Is this somehow a result of relative currency exchange rates, or is it “real”? Does China factor into this story?
Thank God the annexation was nullified. Korea is better off not being a part of Japan.
The third plot is the most impressive to me.