The Japanese and Chinese economic models Research Paper - 1

The Japanese and Chinese economic models - Research Paper Example The economic models perform two basic functions, which include selection of information on the basis of econometric study and simplification of the gathered information. Economic models can be classified as stochastic models, non-stochastic models, qualitative models, quantitative models, equilibrium, and non-equilibrium models. If we talk about some of the benefits of having the economic models, we can say that economic models are widely used for a variety of purposes in the economic environment of every country. Some of main uses of economic models include guiding resource allocation decisions, forecasting the economic activities, planning the functions of economy, and making appropriate decisions related to the economy. All of these uses make economic model one of the most important models for the development of any country. Let us now discuss planning functions of the economic models of China and Japan, which are two of the most progressive and well-established economies of the w orld. Chinese economy has seen significant success and development over the last decade. The communist government of the People Republic of China has been successful in developing a strong Chinese economy, which has started developing its roots in most of the Asian, European, and American markets. â€Å"Although the politics of China remains communist, the economics might be called Advanced Mercantilist† (SNS 2010). Chinese economists have analyzed the perfects ways to deal with the west by considering the cases of South Korea and Japan and have come up with a well-designed economic modal, which has the ability to make the Chinese economy one of the most stable economies of the future world. If we talk about the Japanese model of economy, we can say that Japanese economic model has proved to be a very useful tool not only for the analysis of the current economic situation of Japan.