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The Japanese Crisis--A Case of Strategic Failure?

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Author Info
Cowling, Keith
Tomlinson, Philip R

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Abstract

This paper provides an alternative insight into Japan's current economic problems. We concentrate upon the role played by the economy's central actors, namely Japan's transnational corporations. Since the early 1980's, Japan's transnationals have become dominant players in the global economy, and now have a higher rate of physical investment in new, overseas greenfield sites than their competitors. This has had detrimental consequences for Japan's domestic economy, particularly for small firms who operate in keiretsu networks. This has led to concerns about the "hollowing out" of Japan's domestic industry raising the possibility of long-term industrial decline and "strategic failure".

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 110 (2000)
Issue (Month): 464 (June)
Pages: F358-81
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Handle: RePEc:ecj:econjl:v:110:y:2000:i:464:p:f358-81

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  1. Kozo Kiyota & Shujiro Urata, 2005. "The Role of Multinational Firms in International Trade: The Case of Japan," Discussion papers 05012, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
    Other versions:
  2. Cowling, Keith & Tomlinson, Philip R., 2002. "Re-Visiting The Roots Of Japan'S Structural Decline:The Role Of The Japanese Corporation," The Warwick Economics Research Paper Series (TWERPS) 624, University of Warwick, Department of Economics. [Downloadable!]
  3. Keith Cowling & Philip R. Tomlinson, 2002. "Revisiting the Roots of Japan's Economic Stagnation: the role of the Japanese corporation," International Review of Applied Economics, Taylor and Francis Journals, vol. 16(4), pages 373-390, October. [Downloadable!] (restricted)
  4. Kozo Kiyota & Toshiyuki Matsuura, 2006. "Why Is Multinational Status Important? Evidence from Job Creation and Job Destruction in Japan," Working Papers 555, Research Seminar in International Economics, University of Michigan. [Downloadable!]
  5. Nicholas Crafts & Anthony J. Venables, 2002. "Globalization in History: A Geographical Perspective," CEP Discussion Papers dp0524, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  6. Kozo Kiyota & Toshiyuki Matsuura, 2006. "Employment of MNEs in Japan: New Evidence," Discussion papers 06014, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  7. Philip R. Tomlinson, 2002. "The Real Effects of Transnational Activity upon Investment and Labour Demand within Japan's Machinery Industries," International Review of Applied Economics, Taylor and Francis Journals, vol. 16(2), pages 107-129, April. [Downloadable!] (restricted)
  8. Peter Skott & Takeshi Nakatani, 2006. "Japanese growth and stagnation: a Keynesian perspective," Working Papers 2006-04, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
    Other versions:
  9. Dr Guy West & Assoc Prof Richard Brown, 2003. "Structural Change, Intersectoral Linkages And Hollowing-Out in the Taiwanese Economy, 1976-1994," Discussion Papers Series 327, School of Economics, University of Queensland, Australia. [Downloadable!]
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