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HOW DID JAPAN ACHIEVE INTERNATIONAL COMPETITIVENESS IN TEXTILE INDUSTRY? EXPLAIN THE ROLE OF THE GOVERNMENT AND THE CONTRIBUTION OF PRIVATE INDUSTRY

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Introduction

A nation's textile industry can tell us much about its economic history. Textiles usually stand at the forefront of early industrial efforts, with labour intensive production of commodity goods for the local market. Mills provide jobs, serve local demand for clothing and other textile products, and offer a productive investment outlet for local capital, bringing multiple benefits to state and society in the process of industrialisation.1 The textile industry has frequently been central to industrial development both in industrialized and in developing countries. With its labour intensive character and its relatively simple production techniques this industry can easily tap into the craft skills readily available in developing countries. The textile industry is a spearhead of industrial development, both in strategies of import substitution and export oriented industrialization. This paper reviews forces underlying the lingering comparative advantage. And then I am going to talk about the domestic adjustment process in the industry, with particular attention to the forces underling the increase in its labour productivity. In the second part I am going to emphasize on the role of Japanese textile industry it analyse the scope for specialization and the role of government policies. Moreover, I also talked about its change in the competitive environment of the industry. The resource poor, rapidly industrializing Japanese economy gradually strengthened its comparative advantage in textiles and clothing from 19th century. In addition to developments in Japan itself, the country's changing role in international market is also covered. The role of the textile sector in world industrial revolution The textile industry was the first major modern industry in Japan; it is labour intensive as it creates many job opportunities for a nation. ...read more.

Middle

Japanese companies skilled at adapting to the needs of the market, and also due to their knowledge of domestic supply situation as well as their knowledge of international markets by carry out market research, and set up their market network in markets abroad, which able to assess the comparative advantage of Japanese producers. External market provided the large base for Japanese products and the encouragement towards further investment in innovative activities. 7 Consequently, Japanese companies were well talented to develop new markets. The contribution of textile industry to Japanese economic development The contribution of textiles and clothing to Japan's economy grew steadily during the period of industrialization in Japan from the 1870s to the 1930s. Around 1930, the textile industry was Japan's largest manufacturing industry, and the country's major source of export earnings. Table1 shows those manufacturing industries provided 1/10 of GDP and employment in Japan and 1/3 of the country's total export earnings. Their importance within the rapidly expanding manufacturing sector had peaked a decade or so earlier, when they accounted for 30% of manufacturing value added and approximately 60% of both industrial employment and exports of manufactures, initially, half of all import expenditures was manufactured inputs for the textile sector, but as domestic production of yarns and fabrics expanded, imports of natural fibers were required instead. Table1. Importance of textiles, clothing and fibers in production, employment and trade in Japan, 1874-1969 (% shares) Textiles and clothing's share of total Textiles and clothing's share of manufacturing Natural fiber's share of total import GDP Employment Exports imports GDP employment exports 1874-79 N.A N.A 4 54 10 N.A 25 1 1880-89 2 N.A 9 44 18 N.A 36 6 ...read more.

Conclusion

Competitive pressure in the domestic and foreign markets was the main force inducing individual firms to carry adjustments actively. This began with competition against the products from developing countries in foreign markets spreading to competition with imports in the domestic market and finally to competition among domestically produced goods. 1 Textiles and industry transition in Japan, by Dennis L.Mc Namara, first published 1995 by Cornell University Press, Ithaca and London 2 International competition and domestic adjustments: the case of the Japanese textile industry, by Hiderki Yamawaki, Wissenschaftszentrum Berlin, November 1989, p17 3 The development of capitalism in Japan, by Andrew Flood 1993 4 Technology transfer and industrialization in the developing countries: some lessons from the Japanese experience in the textile sector, which presented at the 19/09/83 on industrial planning and development. By A. Fabayo and L.G.Gatuguta, p17 5 Technology transfer and industrialization in the developing countries: some lessons from the Japanese experience in the textile sector, which presented at the 19/09/83 on industrial planning and development. By A. Fabayo and L.G.Gatuguta, p31 6 Political Economy of East Asia No.1- Japan's impact on the world's textile market, by Tim Beal, June 1982, p3 7 International competition and domestic adjustments: the case of the Japanese textile industry, by Hiderki Yamawaki, Wissenschaftszentrum Berlin, November 1989, p20 8 Export strategy of the textile industry in the Japanese economic development, by Sagara H. P, Peththawadu. 9 International competition and domestic adjustments: the case of the Japanese textile industry, by Hiderki Yamawaki, Wissenschaftszentrum Berlin, November 1989, p18 10 Technology transfer and industrialization in the developing countries: some lessons from the Japanese experience in the textile sector, which presented at the 19/09/83 on industrial planning and development. By A. Fabayo and L.G.Gatuguta, p32 ?? ?? ?? ?? ...read more.

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