IDEAS home Printed from
   My bibliography  Save this paper

"Role of Local Communities in Economic Development: A Survey Focusing on the Export Industries in Nineteenth Century Japan"(in Japanese)


  • Tetsuji Okazaki

    (Faculty of Economics, University of Tokyo)

  • Esuke Taniyama

    (Graduate School of Economics, Osaka University)

  • Masaki Nakabayashi

    (Faculty of Economics, Osaka University)


In this paper we survey the literature on the role of communities in the development of a market economy in Japan. The role of communities has long been explored implicitly as well as explicitly in the literature on the Japanese economic history. In this survey we focus on the export industries in the early stage of the modern economic development. In the late 19th century, when the traditional legal and private institutions which had governed transactions, collapsed, and at the same time the modern institutions were still underdeveloped, it was highly possible that problems due to information asymmetry between sellers and buyers were serious. In fact, we can find many evidences of moral hazard and adverse selection in the documents of this period. On the other hand, since just after the opening up of the international trade in 1858, large amount of products including silk and tea, were exported to foreign countries. This implies some mechanisms worked to resolve the problems stemming from information asymmetry. In the case of silk industry, private associations based on local communities, prevented from moral hazard and adverse selection by establishing brands, which, in turn, were protected by the local government. This case suggests that a market economy was complementary with local communities, and that the function of local communities, in turn, was complemented by the role of local governments.

Suggested Citation

  • Tetsuji Okazaki & Esuke Taniyama & Masaki Nakabayashi, 2005. ""Role of Local Communities in Economic Development: A Survey Focusing on the Export Industries in Nineteenth Century Japan"(in Japanese)," CIRJE J-Series CIRJE-J-133, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:jseres:2005cj133

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Emine G├╝rgen & Thomas A. Wolf, 2000. "Improving Governance and Fighting Corruption in the Baltic and CIS Countries; The Role of the IMF," IMF Working Papers 00/1, International Monetary Fund.
    2. Weitzman Martin L. & Xu Chenggang, 1994. "Chinese Township-Village Enterprises as Vaguely Defined Cooperatives," Journal of Comparative Economics, Elsevier, vol. 18(2), pages 121-145, April.
    3. Andrei Shleifer & Robert W. Vishny, 1991. "Reversing the Soviet Economic Collapse," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 341-367.
    4. Tian, Guoqiang, 2000. "Property Rights and the Nature of Chinese Collective Enterprises," Journal of Comparative Economics, Elsevier, vol. 28(2), pages 247-268, June.
    5. Ruggerone, Luigi, 1996. "Unemployment and Inflationary Finance Dynamics at the Early Stages of Transition," Economic Journal, Royal Economic Society, vol. 106(435), pages 483-494, March.
    6. repec:hrv:faseco:30723290 is not listed on IDEAS
    7. Shang-Jin Wei, 1997. "Gradualism versus Big Bang: Speed and Sustainability of Reforms," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1234-1247, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    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:jseres:2005cj133. 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.

    We have no references for this item. You can help adding them by using 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.