From Smithian Growth to Schumpeterian Development: An Inquiry into the Development of the Kiryu Weaving District in the Early 20th Century Japan

Tomoko Hashino and Keijiro Otsuka ()

No 1121, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This study finds that the process of evolutionary development of the Kiryu weaving district in Japan from 1895 to 1930 can be divided into the two phases, i.e., Smithian growth based on the inter-firm division of labor using hand looms and Schumpeterian development based on factory system using power looms. Weaving manufacturers-cum-contractors led Smithian growth by organizing sub-contracts with out-weavers in rural villages among others, thereby contributing to the steady growth in production. Newly emerged joint stock firms played a role of genuine entrepreneurs by realizing significant scale economies and transforming the traditional weaving district into a cluster of large modern factories.

Keywords: industrial district; Smithian growth; Schumpeterian development; weaving industry; 20th century Japan (search for similar items in EconPapers)
Pages: 48pages
Date: 2011-11
New Economics Papers: this item is included in nep-his and nep-hme
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