Concentration of industrial production first in Osaka and subsequently throughout the Tokaido belt fostered powerful geographic scale economies (the ability to reduce per unit costs as output levels increase), reducing the costs of securing energy, raw materials and access to global markets for enterprises located in the great harbor metropolises stretching from the massive Osaka/Kobe complex northward to the teeming Tokyo/Yokohama conurbation. 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 1910s, the 1930s, and the 1960s, precisely the periods when manufacturing expansion was the most vigorous. Stanford University Press, 1973. Chemicals, iron and steel, machinery Throughout a factory. One cluster of points bears upon the timing of Japan s income per capita growth and the relationship of manufacturing expansion to income growth. Capital formation in manufacturing, or in infrastructure supporting manufacturing expansion, is the main agent pushing long-run income per capita growth. Each machine could be powered up independently of one another. Mitchell, Brian. International Historical Statistics:
B. Tokyo: Health and education for workers, for instance Estimates of Japanese income and output by sector, capital stock and labor force extend back to the 1880s, a period when Japanese income per capita was low. Of Japan s future industrial success. 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. M. By contrast, trade seems much less important to growth in demand during these critical decades, a point emphasized by both Minami (1994) and by Ohkawa and Rosovsky (1973). Proto industrialization thesis. Uriu, Robert. Troubled Industries: Ithaca: System of mechanization spread.
Equally noteworthy of the spurts of the 1910s, 1930s and the 1960s is the overriding importance of gross domestic fixed capital formation, that is investment, for growth in demand. The income figures for Japan exclude income generated in the empire. [d] The Human Development Index is a composite variable formed by adding together indices for educational attainment, for health (using life expectancy that is inversely related to the level of the infant mortality rate, the IMR), and for real per capita income. The United States became an architect of multilateral architecture designed to encourage trade through its sponsorship of the United Nations, the World Bank, the International Monetary Fund and the General Agreement on Tariffs and Trade (the predecessor to the World Trade Organization). Flowed back and forth between rural and urban Japan at wages that were roughly equal in industrial and agricultural pursuits. University of California Press, 1988. Especially striking in the Miracle Growth period was the remarkable increase in the rate of domestic fixed capital formation, the rise in the investment proportion being matched by a rising savings rate whose secular increase It built a modern navy and army that could keep the Western powers at bay and establish a protective buffer zone in North East Asia that eventually formed the basis for a burgeoning Japanese empire in Asia and the Pacific. Macmillan Press, 1994. Smith, Thomas. Native Sources of Japanese Industrialization, 1750-1920. As a result of these domestic advances, Japan was well positioned to take up the Western challenge. A dualistic economy emerged during the 1910s. Sector is not standard in the field of economics. [c] The estimates of trade are obtained by adding merchandise imports to merchandise exports.
New York University Press, 1982. Made it a condition of entry into the Japanese market (through the creation of a subsidiary Japan I. New Haven: The system of confederation government introduced at the end of the fifteenth century placed certain powers in the hands of feudal warlords, daimyo, and certain powers in the hands of the shogun, the most powerful of the warlords. M. Mosk, Carl. Japanese Industrial History: E. Creating social consensus with Land Reform and agricultural subsidies reduced political divisiveness, extending compulsory education and breaking up the zaibatsu had a positive impact. While Japan continued to close the gap in income per capita between itself and the United States after the early 1970s, most scholars believe that large Japanese manufacturing enterprises had by and large become internationally competitive by the early 1970s. As a result, Japanese workers embraced many of the key ideas of Just-in-Time inventory control and Quality Control circles in assembly industries, learning how to do rapid machine setups as part and parcel of an effort to produce components just-in-time Paris: Why?