The Foreign Exchange Allocation Policy in Postwar Japan: Its Institutional Framework and Function
In: Changes in Exchange Rates in Rapidly Developing Countries: Theory, Practice, and Policy Issues (NBER-EASE volume 7)
AbstractIn this paper we will make clear the institutional framework and function of the foreign exchange allocation system in 1950's Japan. Until trade liberalization progressed in the first half of 1960's, MITI executed de facto import quota by means of this system, which generated substantial amount of rent. In order to restrain rent-seeking activities, MITI set clear and objective criteria for foreign exchange allocation by firm, which were in many cases based on export performance and production capacity of each firm, and announced them publicly. This method caused competition to acquire rent thorough foreign exchange allocation among private enterprises, and promoted export and investment. We will quantify the criteria using firm-level data of foreign exchange allocation and also analyze their function through estimating export and investment functions.
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- Okazaki, Tetsuji & Takafumi Korenaga, 1997. "The Foreign Exchange Allocation Policy in Postwar Japan: Its Institutional Framework and Function," CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo 97-F-19, CIRJE, Faculty of Economics, University of Tokyo.
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- Okazaki, Tetsuji & Takafumi Korenaga, 1998.
""Foreign Exchange Allocation and Productivity Growth in Postwar Japan: A Case of the Wool Industry","
CIRJE F-Series, CIRJE, Faculty of Economics, University of Tokyo
98-F-9, CIRJE, Faculty of Economics, University of Tokyo.
- Okazaki, Tetsuji & Korenaga, Takafumi, 1999. "Foreign exchange allocation and productivity growth in post-war Japan: a case of the wool industry," Japan and the World Economy, Elsevier, Elsevier, vol. 11(2), pages 267-285, April.
- KIYOTA Kozo & OKAZAKI Tetsuji, 2013.
"Effects of Industrial Policy on Productivity: The case of import quota removal during postwar Japan,"
Discussion papers, Research Institute of Economy, Trade and Industry (RIETI)
13093, Research Institute of Economy, Trade and Industry (RIETI).
- Kiyota, Kozo & Okazaki, Tetsuji, 2013. "Effects of Industrial Policy on Productivity: The Case of Import Quota Removal during Postwar Japan," PRIMCED Discussion Paper Series, Institute of Economic Research, Hitotsubashi University 48, Institute of Economic Research, Hitotsubashi University.
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