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Japan’s Ultimately Unaccursed Natural Resources-Financed Industrialization

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  • Randall Morck
  • Masao Nakamura

Abstract

Japan’s successful industrialization in the late 19th and early 20th century largely exhausted its then abundant natural resources. Rather than exemplifying rapid development in the absence of natural resources, Japan shows how laissez-faire government and successfully transplanted classical liberal institutions, including active stock markets, exorcised a natural resources curse that undermined its prior state-led industrialization strategy. Japan’s post-WWII reconstruction relied little on natural resources and more on bank financing and state direction, but was not an example of an initial industrialization.

Suggested Citation

  • Randall Morck & Masao Nakamura, 2016. "Japan’s Ultimately Unaccursed Natural Resources-Financed Industrialization," NBER Working Papers 22865, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22865
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P28 - Economic Systems - - Socialist Systems and Transition Economies - - - Natural Resources; Environment

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