Economic Growth in Prewar Japan: Human Capital and Financial Development

2009 Fiscal Year Final Research Report

• Project/Area Number: 20730189
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Single-year Grants
• Research Field: Economic policy
• Research Institution: Nagoya City University
• Principal Investigator: YOKOYAMA Kazuki Nagoya City University, 大学院・経済学研究科, 准教授 (60313459)
• Project Period (FY): 2008 – 2009
• Keywords: 経済発展

Research Abstract

The purpose of this study is to explore the relationship between human capital and financial development in the aspect of economic growth in prewar Japan. This paper uses a panel data set consisting of observations on 45 prefectures (excluding both Hokkaido and Okinawa). The panel estimation implies that development of financial markets played the important role of the significant education-effect on the local economic growth, which indicates per capita income tax, a proxy of GDP. Persons of renown in each prefecture played the important role both of educating and of corporate governance.