Effects of Industrial Policy on Productivity: The case of import quota removal during postwar Japan
AbstractThis paper attempts to provide a systematic analysis on the effects of industrial policy in postwar Japan. Among the various types of Japanese industrial policy, this paper focuses on the removal of de facto import quotas through the foreign exchange allocation system. Analyzing a panel of 100 Japanese manufacturing industries in the 1960s, we find that the effects of the quota removal on productivity were limited—the effects were significantly positive, but time was required before they appeared. On the other hand, the effects of tariffs on labor productivity were negative although insignificant. One possible reason for this is that the Japanese government increased tariff rates before removing the import quotas and maintained high tariff rates afterward. As a result, the effects of the Japanese industrial policy in the 1960s might be smaller than widely believed in the Japanese economic history literature.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 13093.
Length: 35 pages
Date of creation: Nov 2013
Date of revision:
Contact details of provider:
Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
Web page: http://www.rieti.go.jp/
More information through EDIRC
Other versions of this item:
- 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.
- F1 - International Economics - - Trade
- N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-09 (All new papers)
- NEP-EFF-2013-11-09 (Efficiency & Productivity)
- NEP-HIS-2013-11-09 (Business, Economic & Financial History)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kozo Kiyota & Tetsuji Okazaki, 2009.
"Industrial Policy Cuts Two Ways: Evidence from Cotton Spinning Firms in Japan, 1956-1964,"
Global COE Hi-Stat Discussion Paper Series
gd09-101, Institute of Economic Research, Hitotsubashi University.
- Kozo Kiyota & Tetsuji Okazaki, 2010. "Industrial Policy Cuts Two Ways: Evidence from Cotton-Spinning Firms in Japan, 1956â€“1964," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 53(3), pages 587 - 609.
- Kozo Kiyota & Tetsuji Okazaki, 2008. "Industrial Policy Cuts Two Ways: Evidence from Cotton Spinning Firms in Japan, 1956-1964," CIRJE F-Series CIRJE-F-563, CIRJE, Faculty of Economics, University of Tokyo.
- Beason, R. & Weinstein, D.E., 1993.
"Growth, Economies of Scale, and Targeting in Japan (1955- 1990),"
Harvard Institute of Economic Research Working Papers
1644, Harvard - Institute of Economic Research.
- Beason, Richard & Weinstein, David E, 1996. "Growth, Economies of Scale, and Targeting in Japan (1955-1990)," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 286-95, May.
- Kozo Kiyota & Tetsuji Okazaki, 2005.
"Foreign Technology Acquisition Policy and Firm Performance in Japan, 1957-1970: Micro-aspects of Industrial Policy,"
CIRJE-F-329, CIRJE, Faculty of Economics, University of Tokyo.
- Kiyota, Kozo & Okazaki, Tetsuji, 2005. "Foreign technology acquisition policy and firm performance in Japan, 1957-1970: Micro-aspects of industrial policy," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 23(7-8), pages 563-586, September.
- Grant, Hugh & Thille, Henry, 2001. "Tariffs, Strategy, And Structure: Competition And Collusion In The Ontario Petroleum Industry, 1870 1880," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 61(02), pages 390-413, June.
- Head, Keith & Ries, John, 1999. "Rationalization effects of tariff reductions," Journal of International Economics, Elsevier, vol. 47(2), pages 295-320, April.
- Okazaki, Tetsuji & Takafumi Korenaga, 1997.
"The Foreign Exchange Allocation Policy in Postwar Japan: Its Institutional Framework and Function,"
97-F-19, CIRJE, Faculty of Economics, University of Tokyo.
- Tetsuji Okazaki & Takafumi Korenaga, 1999. "The Foreign Exchange Allocation Policy in Postwar Japan: Its Institutional Framework and Function," NBER Chapters, in: Changes in Exchange Rates in Rapidly Developing Countries: Theory, Practice, and Policy Issues (NBER-EASE volume 7), pages 311-340 National Bureau of Economic Research, Inc.
- Marcus Noland & Howard Pack, 2003. "Industrial Policy in an Era of Globalization: Lessons from Asia," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 358, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko).
If references are entirely missing, you can add them using this form.