This paper proved that the concept of competitiveness as a dynamic issue inregard to international trade was a source of increasing the volume of Japaneseexports in the international market;growth and development in the domestic economy.This result comes from mainly two factors: the first, rapid change in thestructure of Japanese production and the composition of Japanese exports parallelingthe rapid structural change in the international market.The second factor is therapid change in the prices and quality of Japanese exports. Policy implicationsobtained from this analysis are: In order to improve the economy’s long-termcompetitiveness and economic growth; Egyptian and developing country’s policymakershave to create and adopt dynamic economic policies that can facilitate thestructural change in the Egyptian economy toward the sectors, which has a strongdemand in the international market.Furthermore,they have to improve the parameterof the non-price competitiveness and the national system of innovation.