• 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

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.

Middle

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.

Conclusion

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

    At one extreme, there seems to be an unconditional acceptance of international organisations and intergovernmental collaboration for their own sake. As Tumlir says: "International organisations, negotiations, agreements and functions seem to be favoured, wholesale and uncritically, more for their international character than for their substantive content".38 The GATT, on balance,

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

    of exports, and in order to improve growth, a huge increase in exports is required. There are several barriers to this increase - intensification of agriculture requires inputs such as machinery and fertiliser, manufactured goods that must be imported, cancelling out some of the gains of increased exports.

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

    For example, discriminatory government procurement practices govern the telecommunications, computer and computer software sectors. The rules permit the government to provide foreign companies with production facilities in Brazil preferential treatment in government procurement decisions (Brazil Trade Policy, 2000). So Brazilian government needs to adopt non-discriminatory policies and open the state

  2. Flower Industry in Netherlands

    Prices go highest in winter and lowest in summer. Third, prices differ considerably by quality, which means vase life and opening of buds. Last, large price gaps exist between new and bulk products. New and special flowers can be priced extremely high. For instance, the price of "Rising Sun" is seven-fold of price of "Royal Dutch", which are both roses.

  1. What are the main determinants of industrial location?

    The presence of scale economies encourages firms to choose only one location, and the presence of trade costs encourages them to locate in the country that has the larger market for their goods. According to Krugman it is determined primarily by the size of the labour force in a particular country, while assuming that labour force is immobile across countries.

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

    If such similar trade agreements are to be set up within Asia and its major trading partners, it will not only create free trade within Asia, but also between Asia and its trading partners which includes countries on the other parts of the globe.

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

    Commercial Banking in Singapore (1846 - 1900) Between 1846 and 1884, seven Western Banks were established in Malaya, with the first being the Oriental Bank. The establishment of bank branches mirrored the importance in trade, with the first branches being in Singapore, followed by Penang.

  2. EXPANDING C&C INDUSTRIES

    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

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