Infant Industry Policy: A Case of Japanese Automobile Industry Before 1945

26 Pages Posted: 20 Feb 2007

Date Written: February 19, 2007

Abstract

This paper analyzes the effect of policies on the Japanese automobile industry before 1945. Japan achieved import substitution of trucks before World War II. It also exported small size passenger cars then. In the process of the development of automobile industry, the government policies seemed to have both positive and negative effects. The promotion policy was indispensable for manufacturers to acquire the skills and knowledge to manufacture automobiles. The heavy procurement of trucks by the Army in the late 1930's delayed the progress of manufacturing capabilities for passenger cars.

Keywords: Japanese automobile industry, Infant industry argument

JEL Classification: 020, L62

Suggested Citation

Togo, Ken, Infant Industry Policy: A Case of Japanese Automobile Industry Before 1945 (February 19, 2007). Available at SSRN: https://ssrn.com/abstract=963953 or http://dx.doi.org/10.2139/ssrn.963953

Ken Togo (Contact Author)

Musashi University ( email )

1-26-1 Toyotama-kami
Nerima-ku
Tokyo 176
Japan
+81 3 5984 3999 (Phone)
+81 3 3991 1198 (Fax)

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