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Competition Policy vs. Industrial Policy as a Growth Strategy

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  • Tatsuo Hatta

Abstract

This paper examines the rationale behind industrial policy and competition policy as growth strategies, and shows that competition policy, rather than industrial policy, generated the rapid economic growth in post-war Japan. It also reveals that Japan's growth rate was lowered from the mid-1970s due to newly introduced industrial policies and paucity of further competition policy. The current Abe government recognises the need for competition policies in Japan to recover from the low-growth period. The paper describes the types of competition policy carried out under Abenomics, especially in strategic special economic zones.

Suggested Citation

  • Tatsuo Hatta, 2017. "Competition Policy vs. Industrial Policy as a Growth Strategy," Working Papers DP-2016-40, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2016-40
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    References listed on IDEAS

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    1. Miwa, Yoshiro & Ramseyer, J. Mark, 2006. "The Fable of the Keiretsu," University of Chicago Press Economics Books, University of Chicago Press, number 9780226532707.
    2. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    3. Beason, Richard & Weinstein, David E, 1996. "Growth, Economies of Scale, and Targeting in Japan (1955-1990)," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 286-295, May.
    4. Ohashi, Hiroshi, 2005. "Learning by doing, export subsidies, and industry growth: Japanese steel in the 1950s and 1960s," Journal of International Economics, Elsevier, vol. 66(2), pages 297-323, July.
    5. Marcus Noland & Howard Pack, 2003. "Industrial Policy in an Era of Globalization: Lessons from Asia," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 358, January.
    6. Paul Krugman, 1986. "Strategic Trade Policy and the New International Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610450, April.
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    Cited by:

    1. Andrey E. Shastitko & Anna I. Meleshkina & Olga A. Markova, 2021. "The market regulation triad: Antitrust, industrial policy and protectionism in the optical fiber market," Upravlenets, Ural State University of Economics, vol. 12(1), pages 47-61, March.
    2. Zhao, Lyuhang & Ruan, Jianqing & Shi, Xinjie, 2021. "Local industrial policies and development of agricultural clusters: a case study based on a tea cluster in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(2), February.

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    Keywords

    Abenomics; completion policy; industrial policy; growth strategy; trade; liberalisation; privatisation;
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