Japan_As_A_Developmental_State_In_The_Post-War_Period

Japan As A Developmental State In The Post-War Period The post-World War II Japanese economic development was a catch-up process with other industrialized economies. Economic policies and corporate strategies were conducted with this utmost mandate in mind: to catch up. This general goal was shared by all economic agents with a national consensus. Macroeconomic policies, particularly monetary policies were conducted in order to provide funds to strategic sectors for economic development. Japanese-style market system(s) functioned fairly well in strengthening international competitiveness of the tradable-goods-producing industries. Although the domestic markets were heavily protected in the early stages of Japan’s post-war development, a potential threat of global competition provided incentives for productivity growth as Japanese industries look for export markets. On the other hand, investments in non-tradable sectors were not fully funded. Those sectors were not directly exposed to global competition either. As a result, development of non-tradable sectors lagged behind. Elements of Japanese post-war development system had a competition-restrictive nature. The system functioned well during the catch-up process. The Japanese economy started to recover quickly from the destruction/destitution of World War II and jumped back to a path of rapid growth. Several favorable external/imposed conditions assisted this jumpstart and a sustained rapid economic growth followed. Endogenous factors that encouraged high growth japanese, system, economic, market, growth, economy, development, business, policies, expansion, corporate, process, new, competition, bubble, after, yen, war, sector, markets, foreign, companies, catch-up, thus, technology, sectors, rate, rapid, monetary, manufacturing, long-term, industries, however, high, government, consensus