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Japan in an institutional quagmire: international business to the rescue?

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  • Ozawa, Terutomo

Abstract

In the early postwar period, Japan crafted its own set of institutions to catch-up in industrialization under the favorable external conditions of Cold War geopolitics (the then-prevailing set of outer institutions and circumstances). The United States largely tolerated Japan's dirigiste economic policy and protectionism. Japan's successful catch-up, however, soon made its existent institutions obsolete, even deleterious to the economy, and incongruous with the altered outer set of institutions promoted by the post-Cold War United States. The Japanese markets are now open than ever before to foreign multinationals who increasingly serve as vital players assisting the host to restructure its dual economy. Yet, Japan's entrenched domestic politics is hindering the wholesale reform of inner institutions in a path-dependent fashion.

Suggested Citation

  • Ozawa, Terutomo, 2003. "Japan in an institutional quagmire: international business to the rescue?," Journal of International Management, Elsevier, vol. 9(3), pages 219-235.
  • Handle: RePEc:eee:intman:v:9:y:2003:i:3:p:219-235
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    References listed on IDEAS

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    1. Ozawa, Terutomo, 2003. "Pax Americana-led macro-clustering and flying-geese-style catch-up in East Asia: mechanisms of regionalized endogenous growth," Journal of Asian Economics, Elsevier, vol. 13(6), pages 699-713, January.
    2. Victor Argy & Leslie Stein, 1997. "The Japanese Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-38009-7, December.
    3. Sven W. Arndt & J. David Richardson, 1987. "Real-Financial Linkages Among Open Economies," NBER Working Papers 2230, National Bureau of Economic Research, Inc.
    4. Terutomo Ozawa, 2001. "The "Hidden" Side of the "Flying-Geese" Model of Catch-Up Growth: Japan's Dirigiste Institutional Setup and a Deepening Financial Morass," Economics Study Area Working Papers 20, East-West Center, Economics Study Area.
    5. Terutomo Ozawa, 1995. "Dynamic industrial policy and flexible production : Toward a technostructural-evolutionary paradigm of MITI's role," Revue d'Économie Industrielle, Programme National Persée, vol. 71(1), pages 39-59.
    6. Alan M. Rugman & Gavin Boyd (ed.), 2001. "The World Trade Organization in the New Global Economy," Books, Edward Elgar Publishing, number 2220.
    7. Ozawa, Terutomo, 2001. "The "hidden" side of the "flying-geese" catch-up model: Japan's dirigiste institutional setup and a deepening financial morass," Journal of Asian Economics, Elsevier, vol. 12(4), pages 471-491.
    8. Tabb, William K., 1995. "The Postwar Japanese System: Cultural Economy and Economic Transformation," OUP Catalogue, Oxford University Press, number 9780195089509.
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    Cited by:

    1. Mark Mcgovern & Nurcan Temel Candemir, 2006. "Agents, Institutions and Regions in Transition," ERSA conference papers ersa06p788, European Regional Science Association.

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