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The Role of the State

In: Japan and the Great Divergence

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  • Penelope Francks

    (University of Leeds)

Abstract

The exact role of the state in the Great Divergence remains the subject of controversy, but there is now considerable evidence that the policies and activities of state institutions, at both national and local levels, in Tokugawa Japan impacted on the economy in significant ways with long-lasting effects. The central government effectively established a strategy of import substitution, while initiating policies such as sankin kōtai (alternate attendance) which inadvertently encouraged consumption, travel, and inter-communication; domains engaged in ‘mercantilist’ schemes promoting local industry and agriculture, as they attempted to deal with income shortfalls. Overall, the nature of state intervention in the pre-industrial economy helped to establish a structure of regional specialisation in labour-intensive rural industries that persisted well beyond the initiation of modern industrialisation.

Suggested Citation

  • Penelope Francks, 2016. "The Role of the State," Palgrave Studies in Economic History, in: Japan and the Great Divergence, chapter 0, pages 79-87, Palgrave Macmillan.
    • Handle: RePEc:pal:palscp:978-1-137-57673-6_8
    DOI: 10.1057/978-1-137-57673-6_8
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