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Government Institutions and Economic Development in Tokugawa Japan

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Government Institutions and Economic Development in Tokugawa Japan Government Institutions and Economic Development in Tokugawa Japan: A Tale of Systems Competition by Gerardus Joseph (Geert) Schreurs1 Submitted as part of the requirements for the degree of Doctor of Philosophy in Economics Graduate School of Economics Hitotsubashi University 2019 Extramural PhD candidate at Hitotsubashi University (ED122004)& E-mail( [email protected]. Abstract: This study focusses on the influence of the government institutions of the Tokugawa regime (1600-1867) on economic development. The Tokugawa shogunate is of interest in that, a) it coincides with the lead-up to and start of the Industrial Revolution in Europe$ and b) Japan was considered by visitors to be a relatively advanced country at the start of the Tokugawa shogunate, and would later become the first non-western country to industrialise. Another reason to study the Tokugawa shogunate is that its government institutions were quite different from both those in use in Europe at the time, as well as those of the pre- and post-Tokugawa Japanese regimes. Where 'urope can be described as a States System with both internal and e,ternal competition between states$ the Tokugawa system was aimed at minimising competition of any kind. Shogunate institutions included strict controls on the warrior class, occupational mobility and international contact. There are therefore compelling questions on how to view the role of the Tokugawa regime: Was it a hinder to economic development- Did it help create the circumstances for later industrialisation? These questions are approached from the viewpoint of government institutions and through the concept of Systems Competition. The Tokugawa regime did have certain strict regulations and substantial e,penses toward preserving peace and stability. On one hand, the resulting increasing isolation made Japan miss out on certain technological and institutional advances$ as well as trade opportunities. On the other hand, the Tokugawa regime did provide circumstances for peace and economic growth and involved commoners in the administrative process down to the village level and below. 2 Index of Tables..............................................................................................6 Index of Figures............................................................................................7 Acknowledgements.......................................................................................8 Introduction......................................................................................................9 Chapter !" Institutions as Cause for #rowth" A $eview of the Literature.......!' ! Introduction..................................................................................................................!' ( The Importance of #overnment Institutions.................................................................!! (.! #o%ernment institutions........................................................................................!! (.( #o%ernment t) es................................................................................................!* (.+ Effects of institutions on economic outcomes......................................................!6 + A Framework for Analysing Institutions........................................................................!9 +.! The - levels of stud)............................................................................................!9 +.( .eterminants of institutions..................................................................................(! +.+ #o%ernment institution dynamics, or Systems Competition................................(+ * Ja an2s Position...........................................................................................................(7 Chapter (" The Tokugawa 0ystem or the 4aking of an Island ,mpire..........(9 ! Introduction..................................................................................................................(9 ( Sha ing the Tokugawa State.......................................................................................(9 (.! 0engoku institutional develo ments....................................................................(9 (.( 5nification............................................................................................................+( (.+ The role of guns versus institutions.....................................................................++ (.* Centralisation.......................................................................................................+* (.- 0ignificance..........................................................................................................+- (.6 1ustification..........................................................................................................+6 + Social and #overnance Structure................................................................................+7 +.! #o%ernance structure..........................................................................................+7 +.( &ocal artici ation................................................................................................+8 +.+ 0ocial controls......................................................................................................*! * International Policy.......................................................................................................** *.! Establishment of Tokugawa trade olicy..............................................................** *.( $eaction to new attem ts at contact....................................................................*7 - Pro ert) $ights............................................................................................................*8 -.! Stabilit).................................................................................................................*9 -.( &egal rotections..................................................................................................-' * 6 6ational Finances........................................................................................................-( 6.! An outline of the national budget.........................................................................-( 6.( Agricultural roduction.........................................................................................-+ 6.+ Tokugawa eriod national government revenue..................................................-6 7 International Comparison.............................................................................................6! 7.! Institutions............................................................................................................6! 7.( Economic growth..................................................................................................6( 7.+ Tax rates...............................................................................................................6* 8 Conclusion...................................................................................................................66 Ap endix to Cha ter (......................................................................................................67 Chapter +" The Tokugawa 0ystem and $uling Class $ents...........................7! ! Introduction..................................................................................................................7! ( Estimation 4ethod.......................................................................................................7( + Tokugawa #o%ernment #oods and Services..............................................................7- * Sources and Calculations............................................................................................77 *.! Cost of Mei7i go%ernment roduction...................................................................77 *.( #o%ernment resources........................................................................................78 *.+ Tokugawa go%ernment interest expenditure........................................................8' *.* Price and volume ad7ustments.............................................................................8! - $esults........................................................................................................................8( 6 Conclusion...................................................................................................................8+ Ap endix to Cha ter +......................................................................................................8- Chapter *" 4ountains of the 0tate.................................................................9! ! Introduction..................................................................................................................9! ( Institutions and Technologies.......................................................................................9+ (.! The beginnings of Ja anese mining....................................................................9+ (.( The institutional setting of the early modern mining industry...............................9* (.+ Technological de%elo ment of the mining industry..............................................97 + International Trade in Metals.....................................................................................!'+ +.! Trading artners during the Tokugawa eriod...................................................!'* +.( 1a an8s im ort and export goods.......................................................................!'6
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