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Nation Building

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  • The Editors

Abstract

It is now well established that a nation remains economically stagnant for a long time before it starts on a takeoff into modern economic growth. During this long period, the nation is dormant. Its productivity remains at a low level. Income is barely at the subsistence level so that there is little room for population growth. Net capital formation is nil as the low income level does not generate positive net savings, and the demand for net investment is absent as there are little incentives for investment in the absence of technical innovations. Such an economy remains stationary. Although the Tokugawa economy may not have been as static as this stereotype of a pregrowth economy suggests, it must have been close to it.

Suggested Citation

  • The Editors, 2002. "Nation Building," Japanese Economy, Taylor & Francis Journals, vol. 30(4-5), pages 68-94.
    • Handle: RePEc:mes:jpneco:v:30:y:2002:i:4-5:p:68-94
    DOI: 10.2753/JES1097-203X30040568
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