United States-Japan economic relations: (1945-1997): a hegemonic quest?

Abstract

In this thesis, the purpose is to analyze the dynamism in the US- Japanese economic relations between 1945- 1997; with regard to the hegemonic stability theory. After stating the basic assumptions of the theory; the economic decline of the US and the rise of Japan are explained and illustrated. Future prospects for the bilateral relations of the two and the future of the world economic leadership are given; following an overall look to the relations. As a response to the question which country the hegemon is today; the thesis concludes that after the Pax Americana era, there is no hegemon in the face of the US losing its strength in the economic arena and Japan not qualified to assume the role, due to its inadequacy in the military sphere. According to the hegemonic stability theory, the two politically powerful countries with their strengths emanating from different sources, do not offer a hegemonic solution but their bilateral relations and cooperation with other advanced countries (G - 7) are vital for an orderly functioning liberal world economy.