Tetsuji Okazaki

The University of Tokyo, Edo, Tōkyō, Japan

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Publications (59)5.84 Total impact

  • Yutaka Arimoto, Kentaro Nakajima, Tetsuji Okazaki
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    ABSTRACT: We examine two sources of productivity improvements in localized industrial clusters of the silk-reeling industry in prewar Japan. Agglomeration improves the productivity of each plant through positive externalities which shifts plant-level productivity distribution to the right. Selection expels less productive plants through competition, which truncates the distribution on the left. We find evidence of agglomeration effects that benefit less productive plants and selection effects in clusters. Here, a cluster is defined by the density of own-industry plants within an area. The results complement previous studies that find positive agglomeration effects in the most productive firms, but no selection effects in cities (Combes et al., 2012; Accetturo et al., 2011). Our results suggest that the sources of productivity improvements in localized industrial clusters might be different from those in cities.
    Regional Science and Urban Economics 01/2014; · 1.01 Impact Factor
  • Tetsuji OKAZAKI
    Asian Economic Policy Review 06/2012; 7(1). · 0.28 Impact Factor
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    Yasushi Hamao, Takeo Hoshi, Tetsuji Okazaki
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    ABSTRACT: No abstract available.
    NBER Book Chapters. 11/2011;
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    Tetsuji Okazaki
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    ABSTRACT: In this article, we explore the structure and implications of interbank networks in prewar Japan, focusing on director interlocking. We find that approximately half the banks had at least one connection with another bank through director interlocking, and that a bank that had connections with other banks was less likely to fail than a bank without a network. The quality of networks also matters in the sense that the failure probability of a bank with a network was negatively associated with the profitability of the connected banks. On the other hand, there is no strong evidence of financial contagion through networks. In addition, networks of director interlocking contributed to the stabilization of the financial system through coordinating bank mergers. Copyright 2012 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
    08/2011;
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    TETSUJI OKAZAKI
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    ABSTRACT: The Japanese aircraft industry, which was very small scale before the Second World War, became Japan's largest manufacturing industry by the end of the war. This article explores the basis for the growth of the aircraft industry during this time by focusing on Mitsubishi Heavy Industries Company's No. 5 Works. It was revealed that during the war, the supply of basic inputs increased substantially: labour force, equipment, and ‘machinery parts’ were in sufficient supply and none of these was a binding constraint on production. The binding constraint existed in the supply of ‘special parts’. In other words, aircraft production expanded as the supply of special parts increased. This increase in the supply of special parts and still faster growth in the supply of machinery parts came about through the expansion of the supplier network in terms of both the number of suppliers and the geographical area in which they were located. These findings imply that outsourcing played a key role in the growth of aircraft production in wartime Japan.
    The Economic History Review 07/2011; 64(3):973 - 994. · 0.78 Impact Factor
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    Tetsuji Okazaki
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    ABSTRACT: This paper investigates the sequence of trade liberalization in postwar Japan and its determinants. As the Japanese government utilized the foreign exchange allocation system as a tool for the industrial policy, especially for protecting domestic industries, in the 1950s, trade liberalization was considered to give a serious impact on those industries, and designing the sequence of trade liberalization was an important policy issue. We indentified the timing of liberalization of each commodity using original official documents, and examined what factors affected on the timing. It was found that in designing the sequence of trade liberalization, the government took into account of competitiveness of domestic industries and survivability of small and medium-sized firms.
    01/2011;
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    Yutaka Arimoto, Kentaro Nakajima, Tetsuji Okazaki
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    ABSTRACT: We examine two sources of productivity improvement in the specialized industrial clusters. Agglomeration improves the productivity of each plant through positive externalities, shifting plant-level productivity distribution to the right. Selection expels less productive plants through competition, truncating distribution on the left. By analyzing the data of the early twentieth century Japanese silk-reeling industry, we find no evidence confirming a right shift in the distribution in clusters or that agglomeration promotes faster productivity growth. These findings imply that the plant-selection effect was the source of higher productivity in the Japanese silk-reeling clusters.
    01/2011;
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    Yutaka Arimoto, Kentaro Nakajima, Tetsuji Okazaki
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    ABSTRACT: We examine two sources of productivity improvement in the specialized industrial clusters of the early twentieth century Japanese silk-reeling industry. Agglomeration improves the productivity of each plant through positive externalities, shifting plant-level productivity distribution to the right. Selection expels less productive plants through competition, truncating distribution on the left. We find no evidence confirming a right shift in the distribution in clusters or that agglomeration promotes faster productivity growth. Rather, the distribution in clusters was severely left truncated, even for younger plants. These findings imply that the plant-selection effect was the source of higher productivity in the Japanese silk-reeling clusters. 基盤研究(S) = Grants-in-Aid for Scientific Research (S)
    01/2011;
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    Tetsuji Okazaki
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    ABSTRACT: This paper investigates how ownership changes affect the plant performance, focusing on the cotton spinning industry in early twentieth century Japan, where many plants experienced ownership changes. Through analyses of detailed plant-level data, it is revealed that, after ownership changes, plants tended to focus on low grade and low price products and, at the same time, total factor productivity, machine productivity and profitability of the plants significantly increased. These results indicate that the plants were managed and utilized more efficiently under the new ownership.
    CIRJE, Faculty of Economics, University of Tokyo, CIRJE F-Series. 01/2010;
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    Tetsuji Okazaki
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    ABSTRACT: This paper explores the flow of funds inside Mitsubishi Bank during the Second World War, focusing on the impacts of acquisition of Daihyaku Bank in 1943 and the Designated Financial Institution System in 1944. Acquisition of Daihyaku Bank substantially expanded the branch network of Mitsubishi Bank, and Mitsubishi Bank utilized those newly acquired branches mainly as a device for deposits collection. A large part of the deposits collected at the branches was sent to the headquarters of Mitsubishi Bank, which, in turn, allocated the funds to loans based on the Designated Financial Institution System, as well to government bonds following the instruction by the National Financial Control Association.
    01/2010;
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    Tetsuji Okazaki
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    ABSTRACT: This paper analyses the effects of schooling, outside work experience and job tenure on human capital formation, using the personal history data of white collar employees of Mitsubishi Zaibatsu in prewar Japan. For all samples including both engineers and clerks, the rate of return to schooling was 4.19%, which was higher than those to outside work experience and tenure. In case we allow for difference in the effects of schooling, outside work experience and job tenure between engineers and clerks, the rate of return to schooling was 5.11% for engineers, while it was 2.61% for clerks. It is notable that for clerks the rate of return to schooling was lower than that to job tenure. These results imply that Mitsubishi differentiated the systems of human capital formation between engineers and clerks. That is, while schooling was the central measure for human capital formation for engineers, on-the-job-training inside the firm was that for clerks.
    CIRJE, Faculty of Economics, University of Tokyo, CIRJE J-Series. 01/2009;
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    Tetsuji Okazaki
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    ABSTRACT: This paper overviews the industrial organization in Japan between the two World Wars. In this period, the change in the industrial structure gave a substantial impact on the industrial organization. On one hand, development of the heavy industries, which had been highly concentrated, raised the average level of market concentration (between effect). On the other hand, market concentration of each industry declined, in particular for the heavy industries (within and covariance effects). Decline of market concentration in each industry reflected the change in firm dynamics. While "natural selection" shaking out inefficient firms weakened, new entries continued in many industries. This new pattern of firm dynamics was associated with the activities of cartels, which proliferated in this period. Cartels indeed restricted competition and enhanced profitability of industries in the short run, which in turn undermined natural selection and induced new entries in the long run.
    CIRJE, Faculty of Economics, University of Tokyo, CIRJE J-Series. 01/2009;
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    Kozo Kiyota, Tetsuji Okazaki
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    ABSTRACT: A number of studies have revealed a negative effect of industrial policy on productivity growth. Is this because industrial policy fails to control the activities of firms or because it can effectively control them? This paper attempts to answer these questions, using firm-level data from the cotton-spinning industry in Japan for the period 1956–64. We determine that industrial policy cut two ways during this period. Industrial policy effectively controlled the output of cotton-spinning firms, which contributed to the establishment of a stable market structure during the period. On the flip side, such policy constrained the reallocation of resources from less productive large firms to more productive small firms. Combined with the negative productivity growth in large firms during this period, industrial policy resulted in negative productivity growth in the industry.
    The Journal of Law and Economics 06/2008; 53(3):587-587. · 0.89 Impact Factor
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    Tetsuji Okazaki
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    ABSTRACT: This paper explores the relationship between patterns of productivity growth and the development stage of an industry, using firm-level data on the cotton spinning industry in Japan in the late nineteenth century. It is found that patterns of productivity growth depend on the development stage of the industry. In the earlier stage of industrial development, productivity growth of each firm, namely the within effect, was the sole major source of aggregate productivity growth. On the other hand, once the industry had matured, resource reallocation across firms became a major source of aggregate productivity growth, along with the within effect. This relationship between patterns of productivity growth and the development stage of an industry is considered to reflect the stage-dependent patterns of innovation and competition.
    CIRJE, Faculty of Economics, University of Tokyo, CIRJE F-Series. 01/2008;
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    ABSTRACT: This paper studies the determinants of agrarian tenancy contract choice and its implication on productivity in prewar Japan. Rapid agricultural growth under extensive tenancy relationships in prewar Japan was achieved with the prevalence of a unique rent reduction contract, which was more efficient than a share tenancy or a pure fixed-rent contract in terms of provision of incentives and risk-sharing. Despite its potential efficiency, a rent reduction contract incurred substantial transaction costs, which may have inhibited its adoption outside Japan. The prevalence of this contract in prewar Japan was likely due to the presence of villages that reduced such costs through informal governance of the private tenancy relationships. We found quantitatively at the village level that the choice of tenancy contract in prewar Iwate prefecture was affected by risk and possibly transaction costs. Furthermore, a sign of Marshallian inefficiency was found at the prefecture level, where the prevalence of tenancy and productivity is negatively correlated and such inefficiency was worse in prefectures with a greater proportion of share tenancy.
    The Developing Economies 01/2008; · 0.15 Impact Factor
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    Tetsuji Okazaki
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    ABSTRACT: In the early 1950s, "industrial rationalization," i.e. renovation and modernization of industrial equipments became the focus of the industrial policy as well as the corporate strategy. In this paper, I explored its historical background and implication. Estimating the vintage of capital stock from 1916 to 1964, I found that the wave of investment during the war brought about a sharp spike in the time-series of the vintage. At the same time, equipment-level vintage data on the iron and steel industry indicate that the vintage distribution in 1949 had a spike reflecting the wartime investment wave. "Industrial rationalization" can be interpreted as a measure to prevent a potential surge of the average vintage due to the vintage spike caused by the wartime investment wave. Through an analysis of establishment-level data of steel-making, it was confirmed that increase of the vintage gave a substantial negative impact on labor productivity.
    CIRJE, Faculty of Economics, University of Tokyo, CIRJE J-Series. 01/2008;
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    Tetsuji Okazaki
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    ABSTRACT: This paper explores how the Bank of Japan (BOJ) dealt with the trade-off between stability of the financial system and the moral hazard of banks in pre-war Japan. The BOJ concentrated Lender of Last Resort (LLR) loans with those banks that had an established transaction relationship with the BOJ. At the same time, the BOJ carefully selected its transaction counterparts, and did not hesitate to end the relationship if the performance of a counterpart declined. Further, the BOJ was selective in providing LLR loans. Through this policy, the BOJ could avoid the moral hazard that the LLR policy might otherwise have incurred.
    Explorations in Economic History. 10/2007;
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    Tetsuji Okazaki, Michiru Sawada
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    ABSTRACT: This article investigates the impact of bank consolidations promoted by government policy, using data from pre-war Japan when the Ministry of Finance promoted bank consolidations through the Bank Law of 1927. We argue that policy-promoted consolidation had a positive effect on deposit growth, especially in the period when the financial system was unstable. On the other hand, it had a negative effect on profitability, particularly when there was no dominant bank among the participants or when more than two banks participated in the consolidation. Policy-promoted consolidation in such cases was likely to be accompanied by large organisational cost.
    Financial History Review 02/2007; 14(01):29-61.
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    Masaki Nakabayashi, Tetsuji Okazaki
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    ABSTRACT: In this paper, we explore the role of courts in the Japanese economic development, using prefecture-level litigation statistics. Since the late nineteenth century, the Japanese people brought many cases before the courts. The dominant part of the cases dealt with monetary issues, which implies that the court played a substantial role in arbitrating disputes related to economic transactions. Through regression analyses of prefecture-level panel data, it was found that frequency of law suits was positively correlated with the scale of economic activities, but that it was only in case economic development was accompanied by urbanization or decline of local communities. At the same time, it is found that increase of the capacity of the legal system enhanced financial development. In this case also, the importance of the capacity of legal system was conditional on the function of local communities.
    CIRJE, Faculty of Economics, University of Tokyo, CIRJE F-Series. 01/2007;
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    Tetsuji Okazaki
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    ABSTRACT: This paper addresses the relationship between economic development, income inequality and social stability, using the data of prewar Japan. We have made prefecture-level income inequality index, based on tax and wage statistics with respect to four data points, 1888, 1896, 1921 and 1935. Regression analyses of the prefecture-level panel data confirmed that there was an inverse-U shaped relationship between economic development and income inequality. At the same time thorough analyses of the data on thefts and suicides, we found that income inequality gave a negative impact on social stability.
    CIRJE, Faculty of Economics, University of Tokyo, CIRJE F-Series. 01/2007;

Publication Stats

56 Citations
5.84 Total Impact Points

Institutions

  • 1999–2014
    • The University of Tokyo
      • Faculty & Graduate School of Economics
      Edo, Tōkyō, Japan
  • 2005–2008
    • Japan University of Economics
      Hukuoka, Fukuoka, Japan
    • Osaka University of Economics
      Ōsaka, Ōsaka, Japan
    • Yokohama National University
      • Department of Business Administration
      Yokohama, Kanagawa, Japan
    • Nagoya City University
      • Faculty of Economics
      Nagoya, Aichi, Japan