• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

japanese industrial policy

Extracts from this document...


Introduction In the 1950s and 1960s, the Japanese government created a complicated system of policies to promote industrial development. The objective of industrial policy was to shift resources to specific industries in order to gain international competitive advantage for Japan. Although in the 1970s and 1980s industrial policy remained important in Japan, thinking began to change. Government intervene less and become more respectful of price mechanisms in guiding future development. During this period, trade and direct foreign investment were liberalised, tariff and non-tariff trade barriers were lowered, and the economies of the advanced nations became more integrated, as the result of the growth of international trade and international corporations. Thinking about industrial policy Industrial policy usually indicates a broad set of government policies which promote the same specific targeted industry or industries. The industries that post-war Japanese industrial policy is argued to have promoted include petrochemicals, steel, automobiles and semiconductors. Each at various times benefited from import restraints, subsidies, antitrust exemptions, etc. ...read more.


Initially, designated machinery in targeted industries qualified for 50 per cent write-off of equipment purchases in the first year. 4) Antitrust exemptions 260 The Anti-monopoly Law of Japan prohibited cartels and price-fixing conspiracies. The Exports Transaction Law, also enacted in August 1952, authorised officially sanctioned export cartels of small and medium firms. With trade opening, Japanese firms responded not only to the dictates if the government, but also to the imperatives of the world marketplace. The Japanese government continued protecting a few sectors, including textiles, transistors, and agriculture, but the general trend of the 1970s was toward openness and Japan's industrial policy took a new focus. The recent decades, 1975 After the mid-1970s, the Japanese government shifted the focus of its industrial policy to towards active promotion of collaborative research efforts in the high tech industries and assistance of firms and workers in declining sectors. 1) Assistance to declining sectors 364 In the mid-1970s, when Japan's macroeconomic growth slowed and world oil prices quadrupled, a number of Japanese industries faced permanent economic reversals, and became widely perceived as "troubled", "structurally depressed", and so on. ...read more.


He claimed that Japan's encouragement of steel, shipbuilding, chemical fertilisers, electronic calculators, and machines tools might have indirectly reduced Japan's net exports of other goods and possibly raised the relative price of those other goods in foreign markets to Japan's net benefit. However, Noland's evidence is unlikely to convince sceptics that Japan's industrial policy did improve the nation's terms of foreign trade. Paul Krugman argues that from enlargement of the steel industry external benefits did not exist. Since 1950, the technology of steel production has advanced little and by 1960 it had been completely assimilated by the Japanese producers, and there were no neighbourhood effects of expanded industry output. Conclusion In conclusion, I think that industrial policy of Japan has been quite successful when government authorities' use of subsidies, tax credits, trade restrictions, anti-trust exemptions, etc, to targeted industries. Japan's industrial policy resides in unique institutions, so much so that "Japanese-style" industrial policy includes government financial intermediaries and an elite bureaucracy with broad powers. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. What are the main determinants of industrial location?

    If one examines recent developments in the European Union single market, it is striking that the regions on the perceived periphery of the EU, such as Portugal and Ireland have been doing better in economic growth terms than regions associated with the core such as France and Germany.

  2. Outline the debate about whether 'export-led growth' is better or worse than 'import substituting ...

    In addition, LDCs compete with each other for finite industrialised country markets. As each country attempts to maximise its trade share, competition increases and prices go down. This was particularly true during the 1980's as so many LDCs were

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    Freedom and prosperity, therefore, are intimately related; and it is impossible to think of either freedom or prosperity without the freedom to engage in international transactions, preferably on a non-discriminatory basis.19 In sum, the classical liberal case for a liberal international economic order is more rounded and persuasive than more restricted, mechanical neoclassical efficiency arguments.

  2. Critically evaluate Brazil's International Trade Policy in terms of key trade issues and primary ...

    The semi-processed and processed food products already benefited from the exemption of state VAT tax (National Import and Export Profile, 1999). It largely stimulates domestic agricultural firms to increase the export production. Besides the government direct financing, there is an export credit program, known as PROEX, which was established in 1991 gained new financial strength since 1996.

  1. In this report, we shall explore the reasons for the shift from multilateralism to ...

    16.3 18.7 ASEAN 22.0 72.0 307.8 403.8 2.7 3.6 6.0 6.3 European Union (15) 325.3 711.6 1893.4 2194.8 39.2 36.0 36.9 34.3 Japan 49.1 190.3 476.1 448.6 5.9 9.6 9.3 7.0 Latin America 45.3 115.8 245.3 382.1 5.5 5.9 4.8 6.0 Middle East 84.7 109.1 155.1 247.8 10.2 5.5 3.0

  2. Emergency Economic Recovery Program From the United Nations International Report, Vol. I, no. A1

    To implement the inter-city and ports components, therefore, domestic contractors might need to be supplemented by foreign firms. Ports a) Statement of the Problem The situation of the country's port is equally problematic. APN's equipment is antiquated and unsuitable for container traffic, dockworker teams are inordinately large and expensive, and night work is rare.


    Analysis of Findings Culture One of the most important factors in determining an overseas market to expand your business to is the culture. Australia offers a multicultural environment among its major cities. Following the most recent census conducted in Australia it shows that nearly "23% of all Australian's are foreign

  2. Explain how money came to be what it was in Singapore at the beginning ...

    Being commodity money, it suffered the usual pitfalls. As the value of silver fell in the 19th century, the intrinsic value of the silver dollars dropped. Thus, due to the instability in value, the silver dollar was a poor store of value.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work