Working Paper: NBER ID: w9386
Authors: Yishay Yafeh
Abstract: This paper reviews the literature on corporate groups in Japan and elsewhere, and offers a comparison of Japan's corporate groups with groups in other developed and developing countries. It then proceeds to examine the evolution of corporate groups in Japan since the mid-1970s. The main conclusions that emerge are that: 1. Empirical evidence on the economic roles of corporate groups in Japan is limited. 2. Japanese groups are, in some respects, quite similar to groups in other countries, but their risk and return characteristics differ substantially. 3. There is little to suggest that over the past thirty years groups have had a major impact on Japan's industrial structure. In view of these findings, and because there is no evidence that Japanese groups (unlike those in some other countries) enjoy any particular political clout, it is unlikely that corporate groups will constitute an impediment to structural change in Japan.
Keywords: No keywords provided
JEL Codes: G3; I2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Lack of empirical evidence on economic roles of corporate groups in Japan (L22) | Limited influence on Japan's industrial structure (L16) |
| Japanese corporate groups do not enjoy particular political clout (L22) | Unlikely to impede structural change (L16) |
| Japanese corporate groups share similarities with those in other countries (L22) | Differences in risk and return characteristics (G11) |
| Japanese corporate groups (L22) | Not a major impact on growth rates of specific industries (F69) |