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From Smithian Growth to Schumpeterian Development: An Inquiry into the Development of the Kiryu Weaving District in the Early 20th Century Japan

  • Tomoko Hashino

    ()

    (Graduate School of Economics, Kobe University)

  • Keijiro Otsuka

    ()

    (National Graduate Institute for Policy Studies)

This study finds that the process of evolutionary development of the Kiryu weaving district in Japan from 1895 to 1930 can be divided into the two phases, i.e., Smithian growth based on the inter-firm division of labor using hand looms and Schumpeterian development based on factory system using power looms. Weaving manufacturers-cum-contractors led Smithian growth by organizing sub-contracts with out-weavers in rural villages among others, thereby contributing to the steady growth in production. Newly emerged joint stock firms played a role of genuine entrepreneurs by realizing significant scale economies and transforming the traditional weaving district into a cluster of large modern factories.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2011/1121.pdf
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Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1121.

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Length: 48pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:koe:wpaper:1121
Contact details of provider: Web page: http://www.econ.kobe-u.ac.jp
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  1. Jones, Geoffrey & Zeitlin, Jonathan, 2009. "The Oxford Handbook of Business History," OUP Catalogue, Oxford University Press, number 9780199573950.
  2. Keijiro Otsuka, 2006. "Cluster-Based Industrial Development: A View From East Asia," The Japanese Economic Review, Japanese Economic Association, vol. 57(3), pages 361-376.
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