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Political Development and Growth: Japan until World War II

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  • Richard Grabowski

Abstract

It is hypothesized in this paper that the way by which a ruling elite extracts its resources significantly influences the evolution of state-related institutions. Specifically, if the ruling elite must construct a penetrating set of institutions to extract revenue and in order to encourage payment of taxes must also provide services in return (reciprocity), then states are likely to have institutions conducive to economic growth. Institutions restraining arbitrary decision making are likely to evolve and are likely to be effective. The process of economic and political development in Japan in the prewar period is used to illustrate this process. Specifically, the evolution of limited parliamentary democracy during this time period was the result of the process by which the ruling elite sought to extract revenue.

Suggested Citation

  • Richard Grabowski, 2007. "Political Development and Growth: Japan until World War II," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 12(4), pages 522-547.
    • Handle: RePEc:taf:rjapxx:v:12:y:2007:i:4:p:522-547
    DOI: 10.1080/13547860701594186
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    References listed on IDEAS

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    1. Mick Moore, 2001. "Political Underdevelopment: What causes ‘bad governance’," Public Management Review, Taylor & Francis Journals, vol. 3(3), pages 385-418, September.
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    Cited by:

    1. Cao, Shixiong, 2012. "Why China's approach to institutional change has begun to succeed," Economic Modelling, Elsevier, vol. 29(3), pages 679-683.

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