The problem of regional "hollowing out" in Japan: lessons for regional industrial policy
Cowling, Keith and Tomlinson, Phil, 1969- (2001) The problem of regional "hollowing out" in Japan: lessons for regional industrial policy. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers).
WRAP_Cowling_twerp625.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
This paper considers the problems of "hollowing out" using a Case Study of Japan's machinery sector. In doing so, it explores the roots of the present crisis by focusing upon the role played by Japan's large transnational corporations. This is important because these corporations are the "central actors" within the Japanese economy and they control a significant proportion of Japanese manufacturing. It is their strategic decisions - those that determine the level and location of investment, employment and output - which ultimately shape the development path for Japanese industry (see Cowling and Sugden, 1994, 1998). In recent years, Japan’s large transnationals have become engaged in the process of elite globalisation, pursuing their own interests at the expense of domestic Japanese industry. This is a fundamental insight that is crucial for designing appropriate policy responses to arrest Japan's current industrial decline. It is argued that the lessons from Japan's experience might guide policy-makers in other regions, such as Wisconsin, who are concerned with future industrial development, the effects of globalisation and problems of "hollowing out".
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HC Economic History and Conditions
D History General and Old World > DS Asia
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Machinery industry -- Japan, International business enterprises, Host countries (Business), Japan -- Economic policy, Japan -- Economic conditions|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||33|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|Funder:||Economic and Social Research Council (Great Britain) (ESRC)|
|Grant number:||R00429834718 (ESRC)|
|References:||Aoki, M. (1988). Information, Incentives, and Bargaining in the Japanese Economy (New York: Cambridge University Press). Aoki, M. (1990). “Toward an Economic Model of the Japanese Firm”. Journal of Economic Literature, vol. 28, no. 1, pp. 1-27. Aoki, M. (1994).“The Japanese Firm as a System of Attributes: a Survey and Research Agenda”. In: The Japanese Firm, Sources of Competitive Strength (eds. M. Aoki and R. Dore), pp. 11-40. (Oxford: Oxford University Press). Armstrong, H & Taylor, J (2000). Regional Economics and Policy (Oxford, UK: Blackwell). Bailey, D. Harte,G. and Sugden, R. (1994). Transnationals and Governments, Recent Policies in Japan, France, Germany, the USA and Britain. (London: Routledge). Beamish, P.W., Delios, A., Lecraw, D. J., (1997). Japanese Multinationals in the Global Economy. (Cheltenham, UK: Edward Elgar). Bellandi, M. (2001). “Local Development and the New Economy” In: Urban and Regional Prosperity in a Globalised Economy (eds. ? ) Chapter 2. Best, M. H., 1990. The New Competition. (London: Polity Press) Broadbent, J (1989) "The Technopolis Strategy vs. De-industrialisation: High-Tech Development Sites in Japan" In: Pacific Rim Cities in the World Economy, Comparative Urban and Community Research Studies Volume 12 (ed. M.P. Smith), pp. 231-253. (London: New Brunswick). Cowling, K. and Sugden, R. (1994). Beyond Capitalism, Towards a New World Economic Order. London: Pinter. Cowling, K. and Sugden, R. (1998). “The Essence of the Modern Corporation: Markets, Strategic Decision-Making and the Theory of the Firm”. The Manchester School, vol 66, no 1, pp. 59-86. Cowling, K. and Sugden, R. (1999). “The Wealth of Localities, Regions and Nations: Developing Multinational Economies”. New Political Economy, vol. 4, no. 3, pp. 361-378. Cowling, K. and Tomlinson. P.R. (2000) “The Japanese Crisis – A Case of Strategic Failure?” The Economic Journal, Vol. 110 No. 464., F358-F381. Cowling, K. and Tomlinson. P.R. (2001) "Revisiting the Roots of Japan's Economic Stagnation: The Role of the Japanese Corporation". Mimeographed, University of Warwick. (copies available: email@example.com). Dicken, P. (1998). Global Shift, Transforming the World Economy. (Wiltshire, UK: Cromwell Press). Dodwell Marketing Consultants (1997). The Structure of the Japanese Auto Parts Industry (Tokyo: Dodwell) Dunning, J. H. (1993) Multinational Enterprises and the Global Economy. (New York: Addison Wesley). Electronic Industries Association of Japan (EIAJ, 1997). Facts and Figures on the Japanese Electronics Industry 1997. (Tokyo: Public Affairs Office, EIAJ). Friedman, J. (1986). “The World City Hypothesis”, Development and Change, 17: 69-83. Gerlach, M.L (1992). Alliance Capitalism: The Social Organisation of Japanese Business. (California: University of California Press). Gerschenkron, A.(1962). Economic Backwardness in Historical Perspective. (Cambridge: Cambridge University Press). Gittelman, M & Dunning, J.H, (1992), “Japanese Multinationals in Europe and the United States: Some Comparisons and Contrasts”. In: Multinationals and the New Europe and Global Trade (eds: M.W.Klein & P.J.J.Welfens ), pp. 237-267 (Berlin: Springer-Verlag). James, B. G. (1989). Trojan Horse: The Ultimate Japanese Challenge to Western Industry (London: Mercury). Japan Small Business Research Institute (JSBRI, 1996). The Age of Small Business: The Foundation for Reconstruction of the Japanese Economy. White Paper. (Tokyo: JSBRI, MITI). Japan Statistics Bureau, Management and Co-ordination Agency (2001). Japanese Statistical Yearbook 2001 (Tokyo: Japan Statistical Association). Japanese Small Business Corporation (JSBC, 1998). The Position of Japan’s SME’s. (copies available http://www.jsbc.go.jp/english/esme2.html). Japan Economic Planning Agency (EPA, 1995). Social and Economic Plan for Structural Reforms - Towards a Vital Economy and Secure Life. White Paper. (Tokyo: EPA). Japanese External Trade Organisation (JETRO, 1997). White Paper on International Trade. (Tokyo: JETRO Publications). Johnson, C. (1982). MITI and the Japanese Miracle: The Growth of Industrial Policy 1925-75. (Stanford: Stanford University Press). Jones, C. I.(1995). “Time Series of Endogenous Growth Models”. Quarterley Journal of Economics, 110(2), pp. 495-525. Marshall, A.(1919). Industry and Trade. (London: Macmillan). Mason, M. (1994). “Historical Perspectives on Japanese Direct Investment in Europe”. In: Does ownership matter? Japanese Multinationals in Europe (eds. M. Mason and D. Encarnation), pp. 1-38. (Oxford: Clarendon Press). Ministry of International Trade and Industry (MITI, 1998). Summary of the 27th Survey of Overseas Business Activities of Japanese Companies (Survey 1997). (Tokyo: MITI). Murphy, K.M., Schleifer, A. and Vishny, R.W. (1989). “Industrialisation and the Big Push”. Journal of Political Economy, vol 97, no 5, pp 1003-1026. Nichols, D.A. (2000). "Wisconsin Manufacturing in the Global Economy: Its Past, Present and Future", Paper prepared for Wisconsin Economic Summit, Milwaukee, November/December 2000 (copies http://www.wisconsin.edu/summit/papers/general) Nikkei Weekly (19/10/98). “Bankruptcy Debt Hits 1st Half record”. (New York: Nihon Keizai Shimbun Inc). Nikkei Weekly (25/10/99). “Can Ghosn steer Nissan along the Road to Recovery ?”. (New York: Nihon Keizai Shimbun Inc). Nikkei Weekly (21/5/2001). "Nissan Stages Swift Comeback, but still Trails Frontrunners" (New York: Nihon Keizai Shimbun Inc). Nikkei Weekly (18/6/2001) "Japanese R&D Trickling Overseas: Skilled, Cheap Work Forces in Other Asian Nations attracting Japanese Firms" (New York: Nihon Keizai Shimbun Inc). Organisation for Economic Co-operation and Development (OECD, 1999), International Direct Investment Statistics Yearbook (Paris: OECD). Ozawa, T. (1973). “Technology Imports and Direct Foreign Investment in Japan” Journal of World Trade Law, 7 (6), pp. 666-679. Ozawa, T. (1991). "Japan in a New Phase of Multinationalism and Industrial Upgrading: Functional Integration of Trade, Growth and FDI". Journal of World Trade, 25, 43-60. Ozawa, T., (1992). "Cross Investments Between Japan and the EC: Income Similarity, Technological Congruity and Economies of Scope". In: Multinational Investment in Modern Europe: Strategic Interaction in the Integrated Community (ed: J.Cantwell) pp. 13-45 (Cheltenham, UK: Edward Elgar). Peoples, J and Sugden, R. (2000) "Divide and Rule by Transnational Corporations" In: The Nature of the Transnational Firm (eds. R. Sugden and C. N.Pitelis) pp. 174-192. (London: Routledge). Piore, M. and Sabel, C. (1984). The Second Industrial Divide: Possibilities for Prosperity. (New York: Basic Books). Pitelis, C. N.(1996). “Effective Demand, Outward Investment and the (Theory of the) Transnational Corporation: An Empirical Investigation”. Scottish Journal of Political Economy, vol 43, no 2, pp. 192-206. Pitelis, C.N. (2000). "The TNC: An all-weather company". In: The Nature of the Transnational Firm (eds. R. Sugden and C. N.Pitelis) pp. 193-209. (London: Routledge). Rosenstein-Rodan, P. (1943) "The Problems of Industrialisation of Eastern and South Eastern Europe", Economic Journal, No.53, pp 203-211. Ruigrok. W. & J.J. Tate (1996). "Public Testing and Research Centres in Japan: Control and Nurturing of Small and Meduim-Sized Enterprises in the Automobile Industry". Technology Analysis & Strategic Management, Vol 8, no. 4. Ruigrok. W. & R.Van Tulder (1995). The Logic of International Restructuring (London: Routledge). Sacchetti. S. & R.Sugden (2000). "Governance in Production and Governance of Corporations: The Nature and Impact of Subcontracting Networks". Paper Presented at the EUNIP Fourth Annual Conference, Tilburg, December 7-9, 2000. (Copies available from firstname.lastname@example.org) Scher, M. J. (1997). Japanese Interfirm Networks and their Main Banks. (London: Macmillan). Smitka, M. J. (1991), Competitive Ties: Subcontracting in the Japanese Automotive Industry, (New York: Columbia University). Sony Corporation (1999), Annual Report (Tokyo: Sony Corp.). Sugden, R. & Wilson, J. (2001). “Urban and Regional Prosperity in a “Globalised”, “New Economy”: An Agenda and Perspective”. In Urban and Regional Prosperity in a Globalised Economy (eds. ? ) Chapter 1. Toyo Keizui Inc (1999). The Japan Company Handbook. (Tokyo: Toyo Keizui). United Nations (UNCTAD, 1997). World Investment Report 1997. New York: United Nations. United Nations (UNCTAD, 2000). World Investment Report 2000: Cross-Border mergers and Acquisitions and Development. New York: United Nations. Whittaker, D. H., (1997). Small Firms in the Japanese Economy. (Cambridge: Cambridge University Press). Womack, J.P., Jones, D.T. and Roos, D. (1990) The Machine that Changed the World (New York: Rawson Associates). Zimpher, N.L., Mone, M., Sammis, W., Sheehy, T. & Piwek, K. (2000). “Wisconsin Economic Summit: South Eastern Wisconsin Regional Paper”, paper prepared for the Wisconsin Economic Summit, November/December 2000.|
Actions (login required)