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Duke Highlights Visitor Attractions. Yet another points to the overriding importance of domestic investment in manufacturing and the lesser significance of trade demand. A fourth group suggests that infrastructure has been important to economic growth and industrial expansion in Japan, as exemplified by the figures on electricity generating capacity and the mass diffusion of communications in the form of radio and television broadcasting.
Japanese Industrialization and Economic Growth
Notable in Panels A and B of the table is that the gap between Japanese and American income per capita closed most decisively during the s, the s, and the s, precisely the periods when manufacturing expansion was the most vigorous. Equally noteworthy of the spurts of the s, s and the s is the overriding importance of gross domestic fixed capital formation, that is investment, for growth in demand. By contrast, trade seems much less important to growth in demand during these critical decades, a point emphasized by both Minami and by Ohkawa and Rosovsky Rather, domestic capital investment seems to be the driving force behind aggregate demand expansion.
The periods of especially intense capital formation were also the periods when manufacturing production soared. Capital formation in manufacturing, or in infrastructure supporting manufacturing expansion, is the main agent pushing long-run income per capita growth. As Ohkawa and Rosovsky argue, spurts in manufacturing capital formation were associated with the import and adaptation of foreign technology, especially from the United States These investment spurts were also associated with shifts of labor force out of agriculture and into manufacturing, construction and facilitating sectors where labor productivity was far higher than it was in labor-intensive farming centered around labor-intensive rice cultivation.
The logic of productivity gain due to more efficient allocation of labor resources is apparent from the right hand column of Panel A in Table 1. Mosk argues that investments in human-capital-enhancing medicine, public health and education , financial banking and physical infrastructure harbors, roads, power grids, railroads and communications laid the groundwork for industrial expansions.
Table 1 suggests that labor quality improved because health was enhanced and educational attainment increased; that investment in manufacturing was important not only because it increased capital stock itself but also because it reduced dependence on agriculture and went hand in glove with improvements in knowledge; and that the social capacity to absorb and adapt Western technology that fueled improvements in knowledge was associated with infrastructure investment.
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Denison, Edward and William Chung. Washington, DC: Brookings Institution, Horioka, Charles Y. Japan Statistical Association. Historical Statistics of Japan [Five Volumes]. Tokyo: Japan Statistical Association, Johnson, Chalmers. Stanford: Stanford University Press, Maddison, Angus. Monitoring the World Economy, Paris: Organization for Economic Co-operation and Development, Minami, Ryoshin.
Houndmills, Basingstoke, Hampshire: Macmillan Press, Mitchell, Brian. International Historical Statistics: Africa and Asia. Mosk, Carl.
Armonk, New York: M. Sharpe, Nakamura, Takafusa. Tokyo: University of Tokyo Press, Ohkawa, Kazushi. New Haven: Yale University Press, Ohkawa, Kazushi and Henry Rosovsky. Smith, Thomas. Native Sources of Japanese Industrialization, Berkeley: University of California Press, Uriu, Robert. Ithaca: Cornell University Press, United Nations Development Programme.
Human Development Report, New York: Oxford University Press, Please read our Copyright Information page for important copyright information. Send email to admin eh. Newsletters To join the newsletters or submit a posting go to click here. Carl Mosk, University of Victoria Japan achieved sustained growth in per capita income between the s and through industrialization. Investment-led growth Domestic investment in industry and infrastructure was the driving force behind growth in Japanese output. Investment in manufacturing capacity was largely left to the private sector.
Rising domestic savings made increasing capital accumulation possible. Japanese growth was investment-led, not export-led. Total factor productivity growth — achieving more output per unit of input — was rapid.
The social capacity for importing and adapting foreign technology improved and this contributed to total factor productivity growth: At the household level, investing in education of children improved social capability. At the firm level, creating internalized labor markets that bound firms to workers and workers to firms, thereby giving workers a strong incentive to flexibly adapt to new technology, improved social capability. At the government level, industrial policy that reduced the cost to private firms of securing foreign technology enhanced social capacity.
Dualism Sharply segmented labor and capital markets emerged in Japan after the s. Tokugawa political economy: daimyo and shogun These developments were inseparable from the political economy of Japan. Readiness to emulate the West As a result of these domestic advances, Japan was well positioned to take up the Western challenge. Central government reforms in education, finance and transportation Jettisoning the confederation style government of the Tokugawa era, the new leaders of the new Meiji government fashioned a unitary state with powerful ministries consolidating authority in the capital, Tokyo.
Mechanical industry was growing, and thousants of people were migrating to cities to work in the new factories. People once rooted in the land and social communities where they farmed found themselves crowded into cities. The traditional authority of the church, the village, and the family were being undermined by impersonal factory and city life. Capitalism also grew in Western Europe in the nineteenth century.
This meant that relatively few people owned the means of production—such as factories—while many others had to sell their labor to those owners. At the same time, relatively impersonal financial markets began to expand. The modern epoch was also marked by the development of administrative state power, which involved increasing concentrations of information and armed power Giddens, Finally, there was enormous population growth worldwide in this period, due to longer life expectancy and major decreases in child death rates.
These massive social changes lent new urgency to the deveopment of the social sciences, as early sociological thinkers struggled with the vast implications of economic, social and political revolutions. The Institutionalization of Sociology. Sociology Today. Sociology is now taught and studied in all continents of the world. Examples from 48 countries in the world have been collected at McMaster University. Sources :. Craig Calhoun Editor. Dictionary of the Social Sciences. New York: Oxford University Press. Giddens, Anthony.
Sociology: A Brief but Critical Introduction.
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