ABSTRACT

This chapter looks at the development of industry in the period since High Economic Growth Period (HEGP), and seeks some hints as to what the future holds in store. It attempts to forecast what impact industries and companies developments are likely to have on industrial organization and macroeconomic growth in the future. The joint blows of the oil price rises and the falling growth rate in the 1970s forced a complete restructuring of industry and a drastic reduction of costs. During HEGP Japanese companies concentrated entirely on growth, through active expansion of investment and employment. The chapter considers how adjustments are made in wages and employment in Japan, as compared with the USA. Long service for the same company is not unique to Japan. During HEGP, because of the increasing activities of manufacturers, the wholesale industry, financial organizations, insurance companies, and repair and servicing companies all made great progress.