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The Japanese model in retrospective: industrial strategies, corporate Japan and the ‘hollowing out’ of Japanese industry

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This article provides a retrospective look at the Japanese model of industrial development. This model combined an institutional approach to production based around the Japanese Firm (Aoki's, J-mode) and strategic state intervention in industry by the Japanese Ministry of International Trade and Industry (MITI). For a long period, the alignment of state and corporate interests appeared to match the wider public interest as the Japanese economy prospered. However, since the early 1990s, the global ambitions of the corporate sector have contributed to a significant ‘hollowing out’ of Japan's industrial base. As the world today looks for a new direction in economic management, we suggest the Japanese model provides policy-makers with a salutary lesson in tying the wider public interest with those of the corporate sector.
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Keywords: J-mode; corporate Japan; globalisation; hollowing out; industrial policy; keiretsu networks

Document Type: Research Article

Affiliations: 1: Department of Economics,University of Warwick, CoventryCV4 7AL, UK 2: School of Management,University of Bath, BathBA2 7AY, UK

Publication date: November 1, 2011

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