IDEAS home Printed from https://ideas.repec.org/a/taf/apbizr/v10y2003i1p1-20.html
   My bibliography  Save this article

Explaining Japan's Kūdōka [hollowing out]: a case of government and strategic failure?

Author

Listed:
  • David Bailey

Abstract

The proposition that Japan is undergoing ‘kudoka’ (a hollowing out process) is examined before exploring explanations for the process. The paper finds much of relevance in the ‘government failure’ approach, whereby the export success of certain sectors combined with import protection for other sectors has produced a trade imbalance, continual yen appreciation, a rising cost base, outward foreign direct investment and hollowing out. However this analysis is incomplete in ignoring the central role of Japanese transnationals in the process. Taking into account the latter via a ‘strategic failure’ approach renders a more complete view of the nature of the hollowing out phenomenon, and how and why government failed. A policy framework to counter such strategic failure is set out, involving a mix of careful deregulation and policies to diffuse strategic decision-making and to reinvigorate declining clusters of small firms.

Suggested Citation

  • David Bailey, 2003. "Explaining Japan's Kūdōka [hollowing out]: a case of government and strategic failure?," Asia Pacific Business Review, Taylor & Francis Journals, vol. 10(1), pages 1-20, October.
    • Handle: RePEc:taf:apbizr:v:10:y:2003:i:1:p:1-20
    DOI: 10.1080/13602380412331288780
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13602380412331288780
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13602380412331288780?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jonathan Morris & Rick Delbridge & Takahiro Endo, 2018. "The Layering of Meso‐Level Institutional Effects on Employment Systems in Japan," British Journal of Industrial Relations, London School of Economics, vol. 56(3), pages 603-630, September.
    2. Fiorenza Belussi & Lisa De Propris, 2013. "They are industrial districts, but not as we know them!," Chapters, in: Frank Giarratani & Geoffrey J.D. Hewings & Philip McCann (ed.), Handbook of Industry Studies and Economic Geography, chapter 20, pages 479-492, Edward Elgar Publishing.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apbizr:v:10:y:2003:i:1:p:1-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FAPB20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.