Is Amakudari Changing? The Case of Regional Banks
AbstractAmakudari, or the reemployment of the officials retired from the government into senior management positions in private companies, is one of the informal institutions most frequently mentioned in the literature of Japanese political economy. However, few studies have examined it systematically. Focusing on the reemployment from Ministry of Finance and Bank of Japan into regional banks, this paper discusses the mechanism of amakudari appointments and its change over time. Four different perspectives (human resource, communication, monitoring and compensation) are presented, and their validity is tested by an empirical analysis with the panel data of 96 regional banks from 1991 to 2000. The result shows that the appointment of a retiree from a ministry at the retirement of a predecessor from the same ministry (chain appointment) is no longer the case. On the other hand, it is also found that amakudari is more likely to occur at more profitable/safer banks than others, which supports the traditional argument that amakudari is used as compensation for retired bureaucrats.
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Bibliographic InfoPaper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number 198.
Length: 73 pages
Date of creation: 01 Sep 2004
Date of revision:
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Postal: The European Institute of Japanese Studies, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Web page: http://www.hhs.se/eijs/
More information through EDIRC
Japan; institutional change; amakudari; banks; political economy; retirement; bureaucrats; Ministry of Finance; Bank of Japan.;
Find related papers by JEL classification:
- H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
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- Horiuchi, Akiyoshi & Shimizu, Katsutoshi, 2001. "Did amakudari undermine the effectiveness of regulator monitoring in Japan?," Journal of Banking & Finance, Elsevier, vol. 25(3), pages 573-596, March.
- Hassink, Wolter & van Rixtel, Adrian, 1998. "Monitoring the Monitors: Amakudari and the Ex-Post Monitoring of Private Banks," CEPR Discussion Papers 1785, C.E.P.R. Discussion Papers.
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