Business Groups and the Big Push: Meiji Japan's Mass Privatization and Subsequent Growth |
| |
Authors: | Morck, Randall Nakamura, Masao |
| |
Affiliation: | Stephen A. Jarislowsky Distinguished Professor of Finance and University Professor at the School of Business at the University of Alberta; as well as Research Associate at the National Bureau of Economic Research. Contact information: School of Business, University of Alberta, 3-23 Business Building, Edmonton, AB, Canada, T6G 2 R6 Konwakai Japan Research Chair and Professor at the Sauder School of Business and the Institute of Asian Research at the University of British Columbia. Contact information: Sauder School of Business, The University of British Columbia, 2053 Main Mall, Vancouver, BC, Canada V6 T 1Z2 |
| |
Abstract: | Paul Rosenstein-Rodan argues that economic development requirescoordinated investment in many interdependent industries, andprescribes a flood of state-controlled investment across allsectors—a so-called big push. Widespread government failuredefeated twentieth-century big push schemes. Butspillovers across firms and industries, and from public goods,hold-up problems, and capital market limitations are real, andjustify coordinated growth across sectors if it can be donewithout government failures. Large, extensively diversifiedpyramidal business groups of listed firms dominate the historiesof developed economies and the economies of developing economies.Arguing that such groups provided this coordination in prewarJapan after a state-run big push failed, we propose that pyramidalbusiness groups are private-sector mechanisms for coordinatingbig push growth, and that competition between rival groups inducesefficiency unattainable in a state-run big push. We postulatethat a successful business-group led big push requires economicopenness, basic public goods, rule of law, separation of thestate from business, and a timely demise of business groupswhen the big push phase is complete. Where these criteria arenot met, growth stalls and oligarchic families become too powerfulto dislodge. |
| |
Keywords: | |
本文献已被 Oxford 等数据库收录! |
|