Institutional inertia, adjustment, and change: Japan as a case of a coordinated market economy

摘要

This article reviews the contributions of three important books that analyze, respectively, the sources and patterns of institutional inertial, adjustment, and change of Japanese economy in response to the country's prolonged economic stagnation. Drawing on their scholarship, the article highlights the dual character of Japanese capitalism - the persistence of core elements of a coordinated market economy on the one hand, and the incremental revision of existing practices towards a liberal market model by state agencies and firms on the other hand. The case of Japan suggests that while coordinated market economies may face the danger of losing some of their comparative institutional advantages under rapid technological change and increased international competition, they may not make an unambiguous switch to liberal institutions, and may take a variety of reform paths in coping with internal and external pressures.