Historical Sources of Institutional Trajectories in Economic Development: China, Japan, and Korea Compared

29 Pages Posted: 3 Dec 2012

Multiple version iconThere are 2 versions of this paper

Date Written: December 3, 2012

Abstract

This essay provides a game-theoretic, endogenous view of institutions, and then applies the idea to identify the sources of institutional trajectories of economic development in China, Japan, and Korea. It stylizes the Malthusian-phase of East Asian economies as peasant-based economies in which small families allocated their working time between farming on small plots - leased or owned - and handcrafting for personal consumption and markets. It then compares institutional arrangements across these economies that sustained otherwise similar economies. It characterizes the varied nature of the political states of Qing China, Tokugawa Japan, and Yi Korea by focusing on the way in which agricultural taxes were enforced. It also identifies different patterns of social norms of trust that were institutional complements to, or substitutes for, political states. Finally, it traces the path-dependent transformations of these state-norm combinations along subsequent transitions to post-Malthusian phases of economic growth in the respective economies.

Keywords: China, Japan, institutional complementarity, institutional change, capitalism, varieties of norms, political economy

JEL Classification: O43, O53, P51

Suggested Citation

Aoki, Masahiko, Historical Sources of Institutional Trajectories in Economic Development: China, Japan, and Korea Compared (December 3, 2012). ADBI Working Paper No. 397, Available at SSRN: https://ssrn.com/abstract=2184145 or http://dx.doi.org/10.2139/ssrn.2184145

Masahiko Aoki (Contact Author)

Stanford University ( email )

E314 Encina Hall
Stanford, CA 94305-6015
United States
415-723-3975 (Phone)
415-725-5702 (Fax)

HOME PAGE: http://www.stanford.edu/~aoki

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