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Beyond Marshallian Agglomeration Economies: The Roles of Trade Associations in Meiji Japan

Published online by Cambridge University Press:  28 October 2013

Abstract

In both developed Western nations and developing countries, economic growth was based on the development of industrial districts, which were much more organized and institutionalized in modern Japan than economist Alfred Marshall had described. Local trade associations played an important role in enhancing Marshallian externalities, arising from the ease of imitating improved ideas and transacting unfinished products among clustered enterprises by facilitating joint actions in the supply of public goods, such as through the creation of local district brands and through the efficient provision of business information. These activities were clearly beyond the scope of agglomeration economies. This article examines the case of Kiryu, one of the best-known silk weaving districts in Japan.

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Articles
Copyright
Copyright © The President and Fellows of Harvard College 2013 

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References

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28 The first law to regulate the use of the word “company” in general was enacted in 1893. Before its enactment, a wide variety of “new” types of economic entities used the word “company.”

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62 Yasuoka, Shigeaki, “Meijiki dogyokumiai no hinshitsu kisei no shoso” [The Difference in the quality control between merchants' and manufacturers' associations in the Meiji era], Doshisha Shogaku 43 (Jan. 1992): 7071Google Scholar.

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