Jpri occasional Paper No. 22 (August 2001) Japanese "Capitalism" Revisited by Chalmers Johnson plan-rational and market-rational economies capitalist developmental state capitalist regulatory state


Freiden and Rogowski give an answer. What is it?



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Freiden and Rogowski give an answer. What is it?
Why not?

look at how the German and Japanese systems bind the potential winners from liberal reform, such as competitive manufacturing exporters, to the potential losers, such as workers and protected service industries. Frieden and Rogowski (1996) contend that internationalization should increase conflict between the competitive and the protected sectors of the economy and strengthen the hand of the competitive over the protected sector. In Germany and Japan, however, the competitive sector cannot push through liberaliza- tion at the expense of the protected sector because the two are linked through business relationships and political ties.

In Germany and Japan, however, the competitive sector does not necessarily




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