ABSTRACT
In the previous chapter it has been shown that a great expansion took place in industrial production and in the volume of manufactured exports in the years preceding the outbreak of the Sino-Japanese War in 1937. Of equal significance were the changes in the relative importance of the different industries and in the composition of the export trade. For several decades before 1929 the trend in industrial development did not alter significantly, and the export trade was becoming increasingly specialized to textiles. Although the scope of Japan's industrial activity was constantly extending, it did not then seem likely that her main industrial interests would alter profoundly for many years to come. Yet when the country began to emerge from the depression it was soon seen that a new course had been set. This is clearly brought out by contrasting the composition of Japan's industry and export trade in 1937 with that of 1929. Some indication of the nature of the change has already been given, since it has been shown that the expansion of industrial output between 1931 and 1937 occurred mainly in the capital goods industries. But a more detailed consideration of the changes is needed for a complete understanding of the industrial history of the period.
