GEP 11/19: The effects of the unequal treaties on normative, economic and institutional changes in 19th century Japan

Summary

We review the economic, institutional and normative changes within Japan that were triggered by the unequal treaties that forced the opening up of Japan after over two hundred years of self-imposed isolation. We argue that Japan provides an insightful case study of an economy which was able to overcome ‘idea gaps’ and ‘object gaps’ in its economic development.

Abstract

Japan's mid 19th century transition from 200 years of self-imposed autarky to open trade is the main success story of East Asian integration into the world economy during the first wave of globalization (1850-1914). This article reviews the economic, institutional and normative changes within Japan that were triggered by the unequal treaties following Admiral Perry's arrival in 1853. These changes were instrumental for Japan's industrial success and catching up with the western powers on economic and military terms by the eve of World War I. We argue that Japan provides an interesting case study of a nation which was able to overcome, what economist Paul Romer has called 'idea gaps' (lack of ideas to produce economic value) and 'object gaps' (lack of factories, physical infrastructure) in the economic development process.

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Authors

Toshihiro Atsumi and Daniel M. Bernhofen

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