Advertisement

The Emerging Nature of Post-Bubble Japanese Business: Policies for Continuing Economic Growth into the New Millennium

  • Raj Aggarwal
Chapter

Abstract

The Japanese economy, the second largest in the world and the lead economy in fast growing Asia, was in a major and structural recession in the 1990s. The changes necessary for Japan to renew its economic growth must reflect not only the effects of the post-bubble recession of the 1990s, but also the end of the cold war and the new social values, demographics, and politics in Japan. This paper is an analytical review of post-war economic growth in Japan including the factors that led to the 1990s recession, an assessment of the likely nature of post-bubble Japanese business as it prepares for growth in the new millennium, and the challenges posed by these changes for the Japanese and for those who plan to work with or compete with Japanese firms.

Keywords

Asset Price Business Strategy Credit Union Japanese Firm Bank Lending 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Abegglen, James C. and George Stalk, (1985), Kaisha: The Japanese Corporation (New York: Basic Books).Google Scholar
  2. Aggarwal, Raj, (1999), “Technology and Globalization as Mutual Reinforcers” Management International Review 39 (Special Issue #2), pp. 83–104.Google Scholar
  3. Aggarwal, Raj, (1994), “Characteristics of Japanese Finance: A Review and Introduction” Global Finance Journal 5 (No. 2, Fall), pp. 141–167.CrossRefGoogle Scholar
  4. Aggarwal, Raj, (1992), “Japanese Financial Institutions in Global Markets” in Yair Aharoni, (ed.), Coalitions and Competitions: Globalizations of Service Firms (New York: Routledge).Google Scholar
  5. Aggarwal, Raj, (1991), “Technology Transfer and Economic Growth: A Historical Perspective” in Tamir Agmon and Mary Ann V. Glinow, (eds.), Technology Transfer in International Business (New York: Oxford University Press).Google Scholar
  6. Aggarwal, Raj, (1987), “The Strategic Challenge of the Evolving Global Economy” Business Horizons 30 (No. 4, July—August), pp. 38–44.CrossRefGoogle Scholar
  7. Aggarwal, Raj and Tamir Agmon, (1990), “International Success of Developing Country Firms” Management International Review 30 (No. 2), pp. 163–180.Google Scholar
  8. Amsden, Alice H., (1991), “Diffusion of Development: The Late Industrializing Model and Greater Asia” American Economic Review 81 (No. 2, May), pp. 282–286.Google Scholar
  9. Anwar, Syed Tariq and Michael A. Taka, (1993), “Productivity and Efficiency in the Japanese Distribu-tion System: A Review and Developments” Journal of World Trade Law 27 (No. 5 October), pp. 83–110.Google Scholar
  10. Aoki, Masahiko, (1990), “Toward an Economic Model of the Japanese Firm” Journal of Economic Litera-ture 28 (No. 1, March), pp. 1–27.Google Scholar
  11. Aoki, Masahiko, and Ronald Dore, (eds.), (1994), The Japanese Firm: Sources of Competitive Strength (New York: Oxford University Press).Google Scholar
  12. Arthur, Brian, (1989), “Competing Technologies, Increasing Returns, and Lock-in by Historical Events” Economic Journal 99, pp. 116–131.CrossRefGoogle Scholar
  13. Balassa, Bela and Marcus Noland, (1988), Japan and the World Economy (Washington, DC: Institute for International Economics).Google Scholar
  14. Ballon, Robert J. and Iwao Tomita, (1988), The Financial Behavior of Japanese Corporations, Tokyo: Kodansha International.Google Scholar
  15. Brioschi, Francesco, Luigi Buzzacchi and Massimo G. Colombo, (1991), “More on Stock Market Value with Reciprocal Ownership” Financial Analysts Journal (No. 3, May June), pp. 76–78.CrossRefGoogle Scholar
  16. Caprio, Gerard and Daniela Klingebiel, (1996), “Bank Insolvencies: Cross-Country Experience” World Bank Working Paper No. 1620, July, Washington, DC: The Bank.Google Scholar
  17. Czinkota, Michael R. and Masaaki Kotabe, (eds.), (1993), The Japanese Distribution System (Chicago, IL: Probus Publishing).Google Scholar
  18. Encarnation, Dennis J. and Mark Mason, (1990), “Neither MITI nor America: The Political Economy of Capital Liberalization in Japan” International Organization 44 (No. 1, Winter), pp. 25–54.CrossRefGoogle Scholar
  19. Emmott, William, (1989), The Sun also Sets (New York: Random House).Google Scholar
  20. Fallows, James, (1994), Looking at the Sun: Rise of the New Economic and Political Systems (New York: Pantheon).Google Scholar
  21. Fedenia, Mark, James E. Hodder and Alexander J. Triantis, (1994), “Cross-Holdings: Estimation Issues, Biases, and Distortions” Review of Financial Studies 7 (No. 1, Spring), pp. 61–96.CrossRefGoogle Scholar
  22. Frankel, Jeffery A., (1991), “The Japanese Cost of Finance: A Survey” Financial Management 20 (No. 1, Spring), pp. 95–127.CrossRefGoogle Scholar
  23. Fruin, W. Mark, (1992), The Japanese Enterprise System (Oxford, UK: Clarendon Press).Google Scholar
  24. Gerlach, Michael L., (1992), Alliance Capitalism: The Social Organization of Japanese Business (Berkeley, CA: University of California Press).Google Scholar
  25. Hatsopoulus, George N., Paul R. Krugman and Lawrence H. Summers, (1988), “U.S. Competitiveness: Beyond the Trade Deficit” Science 241 (July 15), pp. 299–307.CrossRefGoogle Scholar
  26. Higashi, Chikara, and G. Peter Lauter, (1987), The Internationalization of the Japanese Economy (Boston, MA: Kluwer Academic Publishers).Google Scholar
  27. Hori, Shintaro, (1993), “Fixing Japan’s White Collar Economy” Harvard Business Review 71 (No. 6, November-December), pp. 157–172.Google Scholar
  28. Ito, Takatoshi, (1992), The Japanese Economy (Cambridge, MA: MIT Press).Google Scholar
  29. Ito, Takatoshi and Tukuo Iwaisako, (1996), “Explaninig Asset Bubbles in Japan” BOJ Monetary and Economic Studies 14 (No. 1, July), pp. 143–193.Google Scholar
  30. Kennedy, Paul, (1993), Preparing for the Twenty-First Century (New York: Random House).Google Scholar
  31. Kester, W. Carl, (1993), Japanese Takeovers: The Global Quest for Corporate Control (Boston, MA: Harvard Business School Press).Google Scholar
  32. Knetter, Michael, (1995), “Why are Retail Prices in Japan so High?” NBER Working Paper No. 4894.Google Scholar
  33. Krugman, Paul, (1991), “Increasing Returns and Economic Geography” Journal of Political Economy 99 (No. 2, June), pp. 483–499.CrossRefGoogle Scholar
  34. Um, David, (1994), “Explaining the Growth Performance of Asian Developing Economies” Economic Development and Cultural Change 42 (No. 4, July), pp. 829–844.CrossRefGoogle Scholar
  35. Lynn, Leonard H., (1994), “MITI’s Successes and Failures in Controlling Japan’s Technology Imports” Hitotsubashi Journal of Commerce and Management 29 (No. 1, December), pp. 15–33.Google Scholar
  36. Lorriman, John and Takashi Kenjo, (1994), Japan’s Winning Margin (New York: Oxford University Press).Google Scholar
  37. Murphy, R. Taggert, (1997), The Weight of the Yen (New York: W.W. Norton).Google Scholar
  38. Ohmae, Kenichi, (1988), “Low Dollar Means U.S. Has Become Bargain Basement” Wall Street Journal (November 30), p. 18.Google Scholar
  39. Ohmae, Kenichi, (1995), “Japan Letter” Harvard Business Review 73 (No. 3, May June), pp. 154–163.Google Scholar
  40. Olson, Mancur, (1982), The Rise and Decline of Nations (New Haven, CT: Yale University Press).Google Scholar
  41. Reading, Brian, (1992), Japan’s Coming Collapse (New York: Harper Business).Google Scholar
  42. Sato, Ryuzo and Takashi Negishi, (eds.), (1989), Developments in Japanese Economics (San Diego, CA: Academic Press).Google Scholar
  43. Schroeder, Nicholas, Raj Aggarwal, and Charles Gibson, (1991), “Financial Reporting by Japanese Firms on the NYSE: An Analysis of Linguistic Content” Management International Review 31 (No. 3), pp. 233–251.Google Scholar
  44. Sheard, Paul, (1989), “The Main Bank System and Corporate Monitoring and Control in Japan” Journal of Economic Behavior and Organization 11 (No. 4, December), pp. 399–422.CrossRefGoogle Scholar
  45. Smothers, Norman P., (1990), “Patterns of Japanese Strategy: Strategic Combinations of Strategies” Strategic Management Journal 11 (No. 3), pp. 521–533.CrossRefGoogle Scholar
  46. Stalk, George and Alan M. Webber, (1993), “Japan’s Dark Side of Time”. Harvard Business Review 71 (No. 4, July-August), pp. 93 (10).Google Scholar
  47. Takagi, Shinji, (ed.), (1993), Japanese Capital Markets (New York: Basil Blackwell).Google Scholar
  48. Teranishi, Juro and Yutaka Kosai, (eds.), (1993), The Japanese Experience of Economic Reforms (New York: St. Martin’s Press).Google Scholar
  49. Tokunaga, Shojiro, (ed.), (1992), Japan’s Foreign Investiment and Asian Economic Interdependence (Tokyo: University of Tokyo Press).Google Scholar
  50. Weekly, James K. and Raj Aggarwal, (1987), International Business: Operating in the Global Economy, Hinsdale, IL: Dryden Press.Google Scholar
  51. Wierzbicka, Anna, (1991), “Japanese Key Words and Core Cultural Values” Language and Society 20 (No. 3, September), pp. 333–385.CrossRefGoogle Scholar
  52. Wiley, Peter B., (1990), Yankees in the Land of Gods: Commodore Perry and the Opening of Japan (New York: Viking Penguin).Google Scholar
  53. Wolferen, Karel van, (1989), The Enigma of Japanese Power (New York: Alfred A. Knopf).Google Scholar
  54. Wood, Christopher, (1994), The End of Japan Inc. and How the New Japan Will Look (New York: Simon and Schuster).Google Scholar
  55. Zielinski, Robert and Nigel Holloway, (1990), Unequal Equities: Power and Risk in Japan’s Stock Market (New York: Kodansha International).Google Scholar

Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Raj Aggarwal
    • 1
  1. 1.Finance John Carroll UniversityClevelandUSA

Personalised recommendations