A comparative-historical analysis of the industrial policies of Iran and Japan in the post-World War II period

Document Type : Original Article

Authors

1 Ph.D. of Economics, University of Tehran, Tehran. Iran

2 Assistant Professor, Institute For Trade Studies and Research, Tehran, Iran

10.22034/jstp.2024.11750.1804

Abstract

This study examines the path of industrialization and the factors affecting industrial development in the two countries of Iran and Japan. Although Iran had a successful performance in the field of industrial development in the 1960s, like Japan, it could not continue this path. The purpose of this study is to evaluate the factors affecting the performance of industrial policy in Iran and Japan and to answer the question of what differences have there been in the design and implementation of industrial policies in Iran and Japan that can explain the different performance of Iran and Japan. In the first step, while reviewing the existing literature on industrial policy, this research has proposed the commonalities and differences of approaches in these four important areas: Bureaucratic structure, institutional environment and organizational capabilities; sectoral policies and targeted industries; support tools and how to generate them; and the interaction between the state and the private sector. In the next step, using the comparative-historical approach, the performance of Iran and Japan in these four areas is planned. The studied period for Japan is 45 years after the Second World War and for Iran, from the beginning of the reign of Mohammad Reza Pahlavi to the end of the fifth development plan. The results of this survey have revealed these differences between Iran and Japan: Fluctuating domestic political environment, turbulent international relations, low quality of bureaucracy and lack of formation of a pilot agency, lack of long-term strategy in targeting and choosing industries, limited support tools and lack of ability to produce them and finally, the centrality of the public sector.

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