Abstract

http://ssrn.com/abstract=285183
 
 

Citations



 


 



Banks and Economic Growth: Implications from Japanese History


Yoshiro Miwa


Osaka Gakuin University

J. Mark Ramseyer


Harvard Law School


Journal of Law & Economics, Vol. 45, No. 1, Pt. 1

Abstract:     
Several decades ago, Gerschenkron famously argued that banks facilitate economic growth in "backward" countries. To similar effect, theorists sometime claim that banks promote growth by reducing informational asymmetries and thereby improving the allocation of funds. As a fast-growth but allegedly bank-centered economy, Japan plays an important part in these ensuing debates.

In early 20th century Japan firms relied heavily on bank debt, observers argue. Those firms with preferential access to debt outperformed the others, and those that were part of the zaibatsu corporate groups obtained that preferential access through their affiliated banks.

In fact, Japanese banks did not play the role attributed to them. Japan in the first half of the 20th century was not a bank-centered economy; instead, firms relied overwhelmingly on equity finance. It was not an economy where firms with access to bank credit outperformed their rivals; instead, firms earned no advantage from such access. And it was not a world where the zaibatsu manuipulated their banks to favor affiliated firms; instead, zaibatsu banks loaned affiliated firms little more (if any) than the deposits those firms had made with the banks. During the first half of the last century, Japanese firms obtained almost all their funds through decentralized, competitive capital markets.

JEL Classification: G2, G3, K3, N2

Accepted Paper Series





Not Available For Download

Date posted: October 25, 2001  

Suggested Citation

Miwa, Yoshiro and Ramseyer, J. Mark, Banks and Economic Growth: Implications from Japanese History. Journal of Law & Economics, Vol. 45, No. 1, Pt. 1. Available at SSRN: http://ssrn.com/abstract=285183

Contact Information

Yoshiro Miwa
Osaka Gakuin University ( email )
2-36-1 Kishibe-Minami
Suita, Osaka 5645811
Japan
J. Mark Ramseyer (Contact Author)
Harvard Law School ( email )
1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States
617-496-4878 (Phone)
617-496-6118 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 747

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.266 seconds