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Japan's ultimately unaccursed natural resources-financed industrialization

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  • Morck, Randall
  • Nakamura, Masao

Abstract

Japan's successful industrialization in the late 19th and early 20th century largely exhausted its then abundant natural resources. Rather than exemplifying rapid development in the absence of natural resources, Japan shows how laissez-faire government and successfully transplanted classical liberal institutions, including active stock markets, exorcised a natural resources curse that undermined its prior state-led industrialization strategy. Japan's post-WWII reconstruction relied little on natural resources and more on bank financing and state direction, but was not an example of an initial industrialization.

Suggested Citation

  • Morck, Randall & Nakamura, Masao, 2018. "Japan's ultimately unaccursed natural resources-financed industrialization," Journal of the Japanese and International Economies, Elsevier, vol. 47(C), pages 32-54.
  • Handle: RePEc:eee:jjieco:v:47:y:2018:i:c:p:32-54
    DOI: 10.1016/j.jjie.2017.12.004
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    Keywords

    Classical liberalism; Industrialization; Natural resources curse; Japan; Big Push;

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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