Dual Structure in Japan :: essays papers

Dual Structure in Japan What do you understand by the term double complex body part of an economy? How do you explain the three-fold structure of manufacturing industry in Japan? The word dual has the sum of double, twofold or in two parts according to The Australian Oxford Dictionary (1996). Applying the word to an economic context, I would describe the term dual structure of an economy to indicate the co- populace of two different celestial spheres alongside from each one other with disparities in technology and productiveness amongst them. Take for instance, the pull roundence of a conventional primary sector along with a modernistic non-primary sector constitutes to a dual structure. Duality can exist within a particular sector of the economy. The existence of traditional subsistence agriculture alongside export agriculture among the Southeast Asian countries during colonial stoppage is an example of duality within a sector. Minami (1994, p.239) defined dual s tructure to mean the existence of two distinct sectors one that has modern technology, a high capital-labour ratio, high labour productivity and wages, against another one, which has all the turnaround characteristics. Therefore, one can infer that if large-scale industries with high capital enthusiasm (K) were promoted at the stage in which labour supply (L) is relatively commodious then differentials in labour productivity (Y/L) and the wage rate would become and lead to a dual structure. For Japan, three characteristics of the economy indicated the existence of a dual structure. First, the coexistence of a genuinely low unemployment rates and keep low incomes in agricultural and small business. Second, the existence of large (industrial giants) and small scale self-coloureds within the manufacturing sector. Third, the existence of peculiar characteristics of the labour food market such as enterprise unions, wages differentials according to the size of the firm and lo ng term employment (Odaka, 1967 p.50). Furthermore, duality existed in the manufacturing sector too. In general, dual structure of the Japanese economy began before the Second arena War as seen in a widening of income differential between agricultural and non-agricultural. The widening income differential was due to two main reasons. Firstly, productivity differential widen as productivity in the industrial sector increases faster due to relative ease in technology acquire than productivity in agriculture. Secondly, the existence of surplus labour in traditional industries has tended to hinder increases in productivity due to limited arable agriculture for agriculture so the farmland area per worker increased very slightly.