A Model of Technology Transfer in Japan's Rapid Economic Growth Period
Why did the Japanese economy stagnate beforeWorldWar II, how did it achieve rapid economic growth after the war, and why did it stagnate again after the 1970s? To answer these questions, I developed a two-country trade model with technology transfer, where firms in a developed country (the U.S.) transfer technology to the competitors in a developing country (Japan) if it is profitable to do so and where the technology transfer is the engine of economic growth. In this model, among multiple equilibria, the equilibrium with low labor cost in Japan was chosen during the rapid growth period. Then, the firms in the developed country transferred technology to the firms in the developing country, resulting in rapid growth. However, during the other periods, the equilibrium with high labor cost in Japan was chosen, which caused stagnation. The model is quantitatively consistent with the per capita GDP relative to the U.S., the purchasing power parity-exchange rate ratio, and to some degree, the swings in labor share of postwar Japan.
|Date of creation:||Apr 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.iir.hit-u.ac.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1996.
"Long-Run Implications of Investment-Specific Technological Change,"
RCER Working Papers
420, University of Rochester - Center for Economic Research (RCER).
- Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-62, June.
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1995. "Long-Run Implications of Investment-Specific Technological Change," UWO Department of Economics Working Papers 9510, University of Western Ontario, Department of Economics.
- Fumio Hayashi & Edward C. Prescott, 2006.
"The Depressing Effect of Agricultural Institutions on the Prewar Japanese Economy,"
NBER Working Papers
12081, National Bureau of Economic Research, Inc.
- Fumio Hayashi & Edward C. Prescott, 2008. "The Depressing Effect of Agricultural Institutions on the Prewar Japanese Economy," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 573-632, 08.
- Imbs, Jean & Wacziarg, Romain, 2000.
"Stages of Diversification,"
CEPR Discussion Papers
2642, C.E.P.R. Discussion Papers.
- Keisuke Otsu, 2007.
"A Neoclassical Analysis of the Postwar Japanese Economy,"
IMES Discussion Paper Series
07-E-01, Institute for Monetary and Economic Studies, Bank of Japan.
- Otsu Keisuke, 2009. "A Neoclassical Analysis of the Postwar Japanese Economy," The B.E. Journal of Macroeconomics, De Gruyter, vol. 9(1), pages 1-30, May.
- Esteban-Pretel, Julen & Sawada, Yasuyuki, 2014.
"On the role of policy interventions in structural change and economic development: The case of postwar Japan,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 40(C), pages 67-83.
- Julen ESTEBAN-PRETEL & SAWADA Yasuyuki, 2009. "On the Role of Policy Interventions in Structural Change and Economic Development: The Case of Postwar Japan," Discussion papers 09001, Research Institute of Economy, Trade and Industry (RIETI).
- Douglas Gollin, 2001.
"Getting Income Shares Right,"
Department of Economics Working Papers
2001-11, Department of Economics, Williams College.
- Ngai, Liwa Rachel & Samaniego, Roberto, 2009.
"Mapping prices into productivity in multisector growth models,"
CEPR Discussion Papers
7318, C.E.P.R. Discussion Papers.
- L. Ngai & Roberto Samaniego, 2009. "Mapping prices into productivity in multisector growth models," Journal of Economic Growth, Springer, vol. 14(3), pages 183-204, September.
- L. Rachel Ngai & Roberto M. Samaniego, 2008. "Mapping Prices into Productivity in Multisector Growth Models," CEP Discussion Papers dp0869, Centre for Economic Performance, LSE.
- L. Rachel Ngai & Roberto M. Samaniego, 2008. "Mapping prices into productivity in multisector growth models," LSE Research Online Documents on Economics 19579, London School of Economics and Political Science, LSE Library.
- Ben S. Bernanke & Refet S. Gürkaynak, 2002.
"Is Growth Exogenous? Taking Mankiw, Romer, and Weil Seriously,"
in: NBER Macroeconomics Annual 2001, Volume 16, pages 11-72
National Bureau of Economic Research, Inc.
- Ben S. Bernanke & Refet S. Gurkaynak, 2001. "Is Growth Exogenous? Taking Mankiw, Romer and Weil Seriously," NBER Working Papers 8365, National Bureau of Economic Research, Inc.
- Dani Rodrik, 2008. "The Real Exchange Rate and Economic Growth," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(2 (Fall)), pages 365-439.
- Eswaran, Mukesh & Kotwal, Ashok, 1993. "A theory of real wage growth in LDCs," Journal of Development Economics, Elsevier, vol. 42(2), pages 243-269, December.
- Stephen L. Parente & Edward C. Prescott, 2002. "Barriers to Riches," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661306, June.
- Gollin, Douglas & Parente, Stephen L. & Rogerson, Richard, 2007. "The food problem and the evolution of international income levels," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1230-1255, May.
- Edward C. Prescott & Stephen L. Parente, 1999.
"Monopoly Rights: A Barrier to Riches,"
American Economic Review,
American Economic Association, vol. 89(5), pages 1216-1233, December.
- Arghya Ghosh & Souresh Saha, 2000.
"Trade Policy in the Presence of Technology Licensing,"
Econometric Society World Congress 2000 Contributed Papers
0592, Econometric Society.
- Arghya Ghosh & Souresh Saha, 2008. "Trade Policy in the Presence of Technology Licensing," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 45-68, 02.
- Tanaka, Hitoshi & Iwaisako, Tatsuro & Futagami, Koichi, 2007.
"Dynamic analysis of innovation and international transfer of technology through licensing,"
Journal of International Economics,
Elsevier, vol. 73(1), pages 189-212, September.
- Hitoshi Tanaka & Tatsuro Iwaisako & Koichi Futagami, 2006. "Dynamic Analysis of Innovation and International Transfer of Technology through Licensing," Discussion Papers in Economics and Business 06-06-Rev., Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Oct 2006.
- Douglas Gollin & Stephen L. Parente & Richard Rogerson, 2004. "The Food Problem and the Evolution of International Income Levels," Working Papers 899, Economic Growth Center, Yale University.
- Kaiji Chen & Ayse Imrohoroglu & Selo Imrohoroglu, 2005.
"Japanese Saving Rate,"
- Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
- Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
- Rodrik, Dani, 2010.
"Making Room for China in the World Economy,"
5341587, Harvard Kennedy School of Government.
When requesting a correction, please mention this item's handle: RePEc:hit:iirwps:11-05. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library)The email address of this maintainer does not seem to be valid anymore. Please ask Digital Resources Section, Hitotsubashi University Library to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.