Industrialisation through Full Utilisation of Foreign Trade: The Case of Some East Asian Economies
This paper examines the development experience of Japan, and its implication for contemporary developing countries in Asia. Japan achieved rapid industrialisation by full utilisation of foreign trade. Through foreign trade she not only obtained raw materials unavailable domestically, but also introduced new products and technology and developed modern industrial production through import substitution at home and exportation abroad. As a late-starting industrial country in the late nineteenth century, Japan’s industries typically followed the ‘catching-up product cycle’ (CPC) process of development.1 She started as a primary exporter at the take-off stage and then succeeded in achieving export substitution, first in labour-intensive manufactures and later in capital- and technology-intensive ones. This pattern is relevant for developing countries with similar resource endowments in Asia after the Second World War. We will first examine the different stages of Japan’s development and then take a comparative look at recent experience of the Asian developing countries.
KeywordsForeign Trade Import Substitution Silk Fabric Modern Industry Full Utilisation
Unable to display preview. Download preview PDF.
- Akamatsu, K. (1943) ‘Flying Geese Pattern of Industry Development in Newly Emerging Countries’ in Monographs in Honor of Dr Teijiro Veda (In Japanese).Google Scholar
- Kojima, K. (1973) ‘Reorganisation of North-South Trade: Japan’s Foreign Economic Policy for the 1970s’ in Hitotsubashi Journal of Economics, vol. 13, no. 2, February.Google Scholar
- Thoburn, J.T. (1977) Primary Commodity Exports and Economic Development: Theory, Evidence and a Study of Malaysia (London: Wiley).Google Scholar
- Yamazawa, I. (1984) Nihon no Keizai Hatten to Kokusai Bungyo (Japan’s Economic Development and International Trade) Toyokeizi Shinpo-sha.Google Scholar
- Yamazawa, I. and Kohama, H. (1985) ‘Trading Companies and the Expansion of Foreign Trade: Japan, Korea and Thailand’ in Ohkawa, K. and Ranis, G. (eds) (1985) Japan and the Developing Countries (Oxford: Basil Blackwell).Google Scholar