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From Smithian Growth to Schumpeterian Development: An Inquiry into the Development of the Kiryu Weaving District in the Early 20th Century Japan

Author

Listed:
  • Tomoko Hashino

    (Graduate School of Economics, Kobe University)

  • Keijiro Otsuka

    (National Graduate Institute for Policy Studies)

Abstract

This study finds that the process of evolutionary development of the Kiryu weaving district in Japan from 1895 to 1930 can be divided into the two phases, i.e., Smithian growth based on the inter-firm division of labor using hand looms and Schumpeterian development based on factory system using power looms. Weaving manufacturers-cum-contractors led Smithian growth by organizing sub-contracts with out-weavers in rural villages among others, thereby contributing to the steady growth in production. Newly emerged joint stock firms played a role of genuine entrepreneurs by realizing significant scale economies and transforming the traditional weaving district into a cluster of large modern factories.

Suggested Citation

  • Tomoko Hashino & Keijiro Otsuka, 2011. "From Smithian Growth to Schumpeterian Development: An Inquiry into the Development of the Kiryu Weaving District in the Early 20th Century Japan," Discussion Papers 1121, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1121
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2011/1121.pdf
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    References listed on IDEAS

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    Keywords

    industrial district; Smithian growth; Schumpeterian development; weaving industry; 20th century Japan;
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