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Commercial Culture, Political Culture and the Political Economy of Trade Policy: The Case of Japan

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  • Seiichi Katayama
  • Heinrich Ursprung

Abstract

In this paper we present a model of endogenous trade-policy formation which captures crucial aspects of the Japanese commercial and political culture. We analyze the influence of the portrayed cultural traits and show that cultural idiosyncrasies are important determinants of trade policy formation; especially the complex interaction of the two types of cultures is shown to have significant consequence for the policy outcome. Contrasting our model's behavior with the stylized facts of Japanese politics, we arrive at the conclusion that the model's behavior is compatible with the observed (trade) policy positions held by Japanese politicians over the last fifty years.

Suggested Citation

  • Seiichi Katayama & Heinrich Ursprung, 2000. "Commercial Culture, Political Culture and the Political Economy of Trade Policy: The Case of Japan," CESifo Working Paper Series 312, CESifo.
    • Handle: RePEc:ces:ceswps:_312
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    References listed on IDEAS

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    Cited by:

    1. Martin C. McGuire & Hiroshi Ohta, 2005. "Implicit Mercantilism, Oligopoly, and Trade," Review of International Economics, Wiley Blackwell, vol. 13(1), pages 165-184, February.

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