According to Lucien Ellington (2004), the so-called the post-war Japanese "economic miracle  was attributed to some important factors which were generally accepted by economists and economic historians. These factors, which were state-assisted capitalism, the occupation, the Korean War, the world free trade boom, shift from dependent to less dependent industries, a surplus of well-educated workers, surplus funds for investment, trade union structure/ industrial relations, competition and entrepreneurship, a stable political situation and low military expenses, are enumerated as follows (Ellington, 2004).

Firstly, the state-assisted capitalism related to a series of policies and the role of the Ministry of International Trade and Industry (MITI). At the beginning of the post-war era, Japan suffered from a grievous loss of factories, infrastructures and housing accommodation. Moreover, Japan had to resolve the problems of the prevailing starvation and high unemployment (Takada, 1999, p. 4). Fortunately, under the help from America, especially the defence expenses which were mostly afforded by them until 1952, Japan successfully achieved the aim of the policy of economic reconstruction and development in 1956 by investing the savings of military expenses in the reconstruction (Hayashi, 1990, p. 15). After that, Japan adopted some policies to promote and protect particular domestic industries through tariffs, informal trade barriers, such as environmental or consumer production regulations (Ellington, 2004). These policies also encouraged Japanese firms in entering new markets by offering subsidies and other supports (Schaede and Grimes, 2003, p. 11).

On the other hand, MITI, which was the most powerful government organisation in Japan, had two roles in Japan's economic development. One of them was to provide financial aid and support to the industries that were assessed by government as high potential ones, such as the industries of s...