Japanese Industrial Policy: The Case of Iron and Steel Industry
Japanese Industrial Policy: The Case of Iron and Steel Industry

Summary/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

• Details
• Contents