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Assessing the Effects of Japanese Industrial Policy Change during the 1960s

Author

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  • Kozo Kiyota

    (Keio Economic Observatory, Keio University)

  • Tetsuji Okazaki

    (Faculty of Economics, University of Tokyo)

Abstract

This paper provides a systematic analysis of the effects of the industrial policy change in the 1960s in Japan. We utilize a panel of 227 manufacturing industries between 1960 and 1969. We find that on the one hand, the removal of de facto import quotas had significantly negative effects on real output, real output per establishment, and employment. On the other hand, for those industries where import quotas were removed, tariff protection was effective in maintaining real output and employment. However, this does not necessarily mean the success of industrial policy change because neither tariff protection nor the removal of quotas contributed to productivity growth. In that sense, the industrial policy change had limited effects.

Suggested Citation

  • Kozo Kiyota & Tetsuji Okazaki, 2016. "Assessing the Effects of Japanese Industrial Policy Change during the 1960s," Keio-IES Discussion Paper Series 2016-011, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2016-011
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    1. NAOI Megumi & OKAZAKI Tetsuji, 2013. "Political Economy of Trade Liberalization: The case of postwar Japan," Discussion papers 13090, Research Institute of Economy, Trade and Industry (RIETI).
    2. Kozo Kiyota & Tetsuji Okazaki, 2010. "Industrial Policy Cuts Two Ways: Evidence from Cotton-Spinning Firms in Japan, 1956-1964," Journal of Law and Economics, University of Chicago Press, vol. 53(3), pages 587-609.
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    8. Kiyota, Kozo & Okazaki, Tetsuji, 2016. "Assessing the effects of Japanese industrial policy change during the 1960s," Journal of the Japanese and International Economies, Elsevier, vol. 40(C), pages 31-42.
    9. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
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    16. 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, number 358, October.
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    Cited by:

    1. Zhou, Xiaoxiao & Pan, Zixuan & Shahbaz, Muhammad & Song, Malin, 2020. "Directed technological progress driven by diversified industrial structural change," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 112-129.
    2. Kiyota, Kozo & Okazaki, Tetsuji, 2016. "Assessing the effects of Japanese industrial policy change during the 1960s," Journal of the Japanese and International Economies, Elsevier, vol. 40(C), pages 31-42.
    3. Zhou, Bole & Zhao, Shouguo, 2022. "Industrial policy and corporate investment efficiency," Journal of Asian Economics, Elsevier, vol. 78(C).
    4. Zewdie Habte Shikur, 2020. "Industrial policy measure and economic structure in Ethiopia: the case of Oromia region," International Journal of Economic Policy Studies, Springer, vol. 14(1), pages 255-274, February.
    5. dos Santos Alves, Camila Elisa & Belarmino, Luiz Clovis & Padula, Antonio Domingos, 2017. "Feedstock diversification for biodiesel production in Brazil: Using the Policy Analysis Matrix (PAM) to evaluate the impact of the PNPB and the economic competitiveness of alternative oilseeds," Energy Policy, Elsevier, vol. 109(C), pages 297-309.

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    More about this item

    Keywords

    Import quota; Industrial Policy; Productivity; Postwar Japan;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East

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