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Import Substitution Policy in Japan's Economic Development

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  • Juro Teranishi
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    Abstract

    Japan is the only major country which has successfully achieved secondary import substitution policy in this century. This paper tries to clarify the reasons for this success as well as the significant cost associated with the policy. Japan maneged to implement import substitution owing to fortuitous increases in foreign reserves, the liberal economic atmosphere of the early 20th century, the absence of labor protection policy, and the relatively weak political power of landlord. It seems to have paid a considerable cost, however, in overall reduction of the macro utility level. This was a consequence of the deepening of the dual structure of the economy during the fifty years of import substitution.

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    Bibliographic Info

    Paper provided by Institute of Economic Research, Hitotsubashi University in its series Discussion Paper Series with number a256.

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    Date of creation: Apr 1992
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    Handle: RePEc:hit:hituec:a256

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