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Evolution of Economic Systems: The Case of Japan

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The Institutional Foundations of East Asian Economic Development

Part of the book series: International Economic Association Series ((IEA))

Abstract

Recent rapid economic developments in East Asia generated an interest in the institutional foundation of economic systems in this area. Many believe that the Japanese economic system, characterized by its own human resource practices, corporate governance, and inter-firm and government — business relationships, is different from its Western counterparts, especially those of the United States and Great Britain. Similarly, many argue that one of the crucial factors behind East Asia’s recent economic performance is the close family ties of Chinese culture. All of these economies also seem to be characterized by the government’s tight grip over the private sector. Together with the emergence of new analytical tools that are capable of analyzing incentives and informational problems — game theory, information economics, incentive theory, contract theory — these experiences naturally intensify theoretical interest in the role of institutions and economic systems.2

We are grateful to Avner Greif for his many critical yet constructive comments. We have also benefited from useful comments by Masahiko Aoki, Yujiro Hayami and other participants in the Round Table.

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Author information

Authors and Affiliations

  1. Tokyo University, Japan

    Tetsuji Okazaki & Masahiro Okuno-Fujiwara

  2. Stanford University, USA

    Avner Greif

Authors
  1. Tetsuji Okazaki
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  2. Masahiro Okuno-Fujiwara
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  3. Avner Greif
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Editor information

Editors and Affiliations

  1. Aoyama-Gakuin University, Tokyo, Japan

    Yujiro Hayami

  2. Stanford University, USA

    Masahiko Aoki

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© 1998 International Economic Association

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Okazaki, T., Okuno-Fujiwara, M., Greif, A. (1998). Evolution of Economic Systems: The Case of Japan. In: Hayami, Y., Aoki, M. (eds) The Institutional Foundations of East Asian Economic Development. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26928-0_15

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