Title: Economic growth and risk - a critical review of the postwar Japanese economy

Authors: Yasumi Matsumoto

Addresses: School of Political Science and Economics, Waseda University, 1-6-1, Nishi-Waseda, Shinjuku-ku, Tokyo 169-8050, Japan

Abstract: In this paper, I critically review the history of Japanese economic growth and the depression after World War 2 based on a recognition induced from Arrow's impossibility theorem such that pursuit of economic efficiency inevitably loses elasticity of society against the change of environment. Although any change of environment, especially a decisive one like the Great East Japan earthquake of March 11, 2011, was caused not only by natural phenomena but also by human, economic and social factors, etc., I try to investigate the logical reasoning between an economic structure historically created by economic policies and inevitable social problems caused by them. As a conclusion, the comprehensive economic policy of development of resource-economising technology and export-oriented policy employed just after the war seems to be a decisive cause of present long continuing depression in Japan because the policy was too successful in the economic development of post-war Japan.

Keywords: postwar Japanese economy; long depression; economic efficiency; elasticity of society; resource economising technology; export oriented policy; Japan; exports; economic growth; risk; economic policy; economic development.

DOI: 10.1504/GBER.2013.050663

Global Business and Economics Review, 2013 Vol.15 No.1, pp.1 - 13

Published online: 30 Oct 2013 *

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