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Development State Evolving: Japan’s Graduation from a Middle Income Country

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  • Tetsuji Okazaki

    (Faculty of Economics, The University of Tokyo)

Abstract

This paper reexamines the industrial policy in postwar Japan from perspectives of the literature on a “development state†and a “middle income trap†. Japan transited from a middle income country to a high income country in the period from the 1950s to the 1970s. This process was characterized by a large structural change, such as resource reallocation from the primary industry to the secondary and the tertiary industries as well as resource reallocation within the secondary industry. Transition to a high income country is a challenging task for a middle income country. With respect to Japan, the industrial policy played a positive role in the transition. This was achieved by interactions between MITI and other related actors, who constrained and corrected MITI’s attempts of excess intervention.

Suggested Citation

  • Tetsuji Okazaki, 2017. "Development State Evolving: Japan’s Graduation from a Middle Income Country," CIRJE F-Series CIRJE-F-1063, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2017cf1063
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    References listed on IDEAS

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    5. Takatoshi Ito & Anne O. Krueger, 1999. "Changes in Exchange Rates in Rapidly Developing Countries: Theory, Practice, and Policy Issues," NBER Books, National Bureau of Economic Research, Inc, number ito_99-1, June.
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    7. Kiyota, Kozo & Okazaki, Tetsuji, 2013. "Effects of Industrial Policy on Productivity: The Case of Import Quota Removal during Postwar Japan," PRIMCED Discussion Paper Series 48, Institute of Economic Research, Hitotsubashi University.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The Middle Income Trap
      by joymanlee in NEP-HIS blog on 2018-03-02 03:03:14

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