Dualism of Japanese Economy and the Post-War Keiretsu System

Abstract

The article is devoted to institutional analysis of the keiretsu - the key economic system of the post-war Japan. Emerging of such effective form of business interaction was connected with a various institutional factors which are the subject of the present research. Dualism of Japanese economy, life-time employment system, relational contracting, special practice of professional education and other rules and traditions have created favourable conditions for emerging of keiretsu system. Inter-institutional relations have also played the important role that has allowed to reduce transactions costs within this system and to achieve higher efficiency. In the result, keiretsu appeared to be a proper way of economic interaction in the framework of mixed economy.

Keywords:

economic history of Japan