In September 1931, the Japanese Army invaded Manchuria, and in December of the same year, Japan discarded the gold standard. Both incidents had a significant impact on the course of the Japanese economy, leading as they did to heavy industrialisation, rapid economic growth, and further involvement in wars. Thanks to the rapid economic growth, the non-integrated firms quickly recovered from the depression, and the Japan Steel Corporation, established in 1934, became a partial solution to the historical imbalance in the industry, as described in previous chapters. With heavy industrialisation, the iron and steel industry expanded its capacity and began to change its industrial structure. In 1937, when the China War broke out, Japan moved into a war economy, and the iron and steel industry, as the most important sector for the production of munitions, came under government control. This chapter will examine how heavy industrialisation and rapid economic growth in the early 1930s increased the production capacity of the industry and how the industrial policy of the government changed. It will also explore how the controlled economy worked, how it affected the iron and steel industry, and what the government and the industry learned from the controlled economy.
- Blast Furnace
- Private Firm
- Steel Industry
- Japanese Economy
- Production Goal
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, access via your institution.
Tax calculation will be finalised at checkout
Purchases are for personal use onlyLearn about institutional subscriptions
Unable to display preview. Download preview PDF.
Notes and References
Nakamura Takafusa, The Postwar Japanese Economy: Its Development and Structure ( Tokyo: University of Tokyo Press, 1981 ) pp. 6–7.
© 1994 Seiichiro Yonekura
About this chapter
Cite this chapter
Yonekura, S. (1994). The Second World War and the Controlled Economy. In: The Japanese Iron and Steel Industry, 1850–1990. Studies in the Modern Japanese Economy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230374843_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-39222-3
Online ISBN: 978-0-230-37484-3