IDEAS home Printed from
   My bibliography  Save this paper

The Foreign Exchange Allocation Policy in Postwar Japan: Its Institutional Framework and Function


  • Okazaki, Tetsuji

    (Faculty of Economics, University of Tokyo.)

  • Takafumi Korenaga

    (Graduate School of Economics, Hitotsubashi University.)


In this paper we will make clear the institutional framework and function of the foreign exchange allocation system in 1950's Japan. Until trade liberalization progressed in the first half of 1960's, MITI executed de facto import quota by means of this system, which generated substantial amount of rent. In order to restrain rent-seeking activities, MITI set clear and objective criteria for foreign exchange allocation by firm, which were in many cases based on export performance and production capacity of each firm, and announced them publicly. This method caused competition to acquire rent thorough foreign exchange allocation among private enterprises, and promoted export and investment. We will quantify the criteria using firm-level data of foreign exchange allocation and also analyze their function through estimating export and investment functions.

Suggested Citation

  • Okazaki, Tetsuji & Takafumi Korenaga, 1997. "The Foreign Exchange Allocation Policy in Postwar Japan: Its Institutional Framework and Function," CIRJE F-Series 97-F-19, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:97f19

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Anne O. Krueger, 1978. "Liberalization Attempts and Consequences," NBER Books, National Bureau of Economic Research, Inc, number krue78-1, January.
    2. Jagdish N. Bhagwati, 1978. "Appendix to "Anatomy and Consequences of Exchange Control Regimes"," NBER Chapters,in: Anatomy and Consequences of Exchange Control Regimes, pages 219-221 National Bureau of Economic Research, Inc.
    3. Jagdish N. Bhagwati, 1978. "Anatomy and Consequences of Exchange Control Regimes," NBER Books, National Bureau of Economic Research, Inc, number bhag78-1, January.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Kiyota, Kozo & Okazaki, Tetsuji, 2016. "Assessing the effects of Japanese industrial policy change during the 1960s," Journal of the Japanese and International Economies, Elsevier, vol. 40(C), pages 31-42.
    2. KIYOTA Kozo & OKAZAKI Tetsuji, 2013. "Effects of Industrial Policy on Productivity: The case of import quota removal during postwar Japan," Discussion papers 13093, Research Institute of Economy, Trade and Industry (RIETI).
    3. Okazaki, Tetsuji & Korenaga, Takafumi, 1999. "Foreign exchange allocation and productivity growth in post-war Japan: a case of the wool industry," Japan and the World Economy, Elsevier, vol. 11(2), pages 267-285, April.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tky:fseres:97f19. 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: (CIRJE administrative office). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.