At the same time, while enjoying high growth, these countries suffer from problems such as pollution and urban overpopulation, which Japan once experienced. In these areas, there also exist great opportunities for Japanese firms to take advantage of their skills and knowhow acquired over many years. In order to actually capture such overseas demand, it is necessary to arrange an open trade system.
26  Hayashi and Prescott (2002) argue that growth theory, treating the economic productivity as exogenous, accounts well for the Japanese lost decade, and call for the analysis about policy change that allows productivity to grow rapidly. See also Rogoff (2010).