Japanese Industrial Policy: The Case of Iron and Steel Industry

Edita Đapo

Abstract


The purpose of this paper is twofold. The first purpose is to
contribute in understanding the rationale for intervention in iron
and steel industry in Japan after World War II. The infant industry
argument is explained and all criteria for protection discussed.
The second purpose is to analyze and evaluate protection policy
in the Japanese iron and steel industry in the period from 1950 to
1970. In order to evaluate protection policy a partial equilibrium
approach is used to calculate the country’s welfare effects from
trade barriers. The results show that the domestic consumers had
suffered the loss for first ten years, but in the next ten years they
gained more than four times from protection.

Keywords


Industrial Policy; Protection; Infant Industry Argument; Welfare Effects; Consumers’ Costs and Benefits

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DOI: http://dx.doi.org/10.21533/isjss.v1i2.32

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Copyright (c) 2016 Edita Đapo

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