CONUNDRUM OF DECREASED IMPORT DEPENDENCE IN JAPAN

It is a surprise that Japanese import dependence (import to GNP ratio) has declined by half to less than 6 percent in 1994 since early 1950' s. This low import dependence symbolized the closedness of the Japanes e market. The present paper attempts to explore the reasons of decreas ed import dependence. One reason was 'the principle of minimum interme diate goods import' which was enforced since the war time. According t o structural changes in production and export, the imports of intermed iate goods have changed their share from primary raw materials to proc essed materials and then to parts, components and other capital goods. This resulted in lower import dependence as a whole, since larger-imp ort-content-industries have relatively declined, while smaller-import- content-industries have relatively expanded. Other important character istics of the Japanese import behavior are identified and analysed.