"Government Credit Policy and Industrial Performance: Japanese Machine Tool Producers, 1963–91"

Charles Calomiris, Charles Himmelberg

Policy Research Working Paper 1434, March 1995

Publication type: Working paper

Research Archive Topic: Business Economics and Public Policy, World Business

Abstract

In Japan, directed credit policy for the machine tools industry was effective in promoting investment, supporting growing firms, crowding in private funds, and avoiding capture of policy funds by particular firms. But the effectiveness of industrial credit policy in Japan is probably unrepresentative. In countries where special interest lobbies rather than a unified national plan shape such programs, they may do more harm than good.

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