Open trade, closed industry: the Japanese aerospace industry in the evolution of economic nationalism and implications for globalization
This chapter revisits the Japanese case of by asking whether Japan can and should pursue economic nationalism in the twenty-first century, or whether it should commit itself to the liberal multilateralism that has been the foundation of the post-war international economic system. Using the latest round of Japanese policy debate as a case study, the chapter highlights the potential opportunity for a mature and advanced industrial economy such as Japan to pursue economic nationalism while at the same time embrace liberal multilateralism. The chapter examines Japan’s search for industrial and trade policy to cope with new competitive challenges emanating from multilateral agreements by exploring the intense debate between the Japanese government and the civil aircraft manufacturers. By embarking on a partnership with private business, the Japanese government demonstrates the institutional basis for international competitiveness and its continuing engagement with economic nationalism in multilateral global markets.
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