Paper prepared for the conference on Accounting for the Great Divergence, The University of Warwick in Venice, Palazzo Pesaro Papafeva, 22-24 May 2014 Estimating the shares of secondary- and tertiary-sector output in the age of proto-industrialisation: the case of Japan, 1600-1874 Osamu Saito (Hitotsubashi University) and Masanori Takashima (Hitotsubashi University) This version: 17 May 2014 Very preliminary, PLEASE DO NOT QUOTE 1. Introduction It has long been recognised that data on industrial goods and services are not readily available for any country in early modern times. It is against this background that Malanima (2003, 2011) has suggested a way in which this difficulty is circumvented, i.e. the use of urbanization rate, which has been gaining support from scholars from European countries1. For Japan too, Bassino et al. (2011) attempts to utilise this method for the estimation of GDP over the very long run: the underlying rationale is that much of demand for secondary- and tertiary-sector goods and services came from urban populations. The supposition of those researches may hold true as far as ancient and medieval periods are concerned, but it is likely that it will not for the proto-industrial age. Despite the naming, both industry and services grew in the countryside during that period. As a result, the relationship between the share of non-primary sector output and the rate of urbanisation became less straightforward. In his analysis of proto-industrialisation Saito (1983) showed, based on regional data for early Meiji Japan, that urbanization was not the sole predictor of population density while there was a significant correlation between population density and the weight of rural industry. While the former is consistent with the urbanisation pattern identified by de Vries (1984) for proto-industrial Europe, the latter finding implies that the density of population can be regarded as a 1 By referring to Malanima’s 2003 article, Álvarez-Nogal and Prados de la Escosura (2007) adopts the same method for Spain between 1500 and 1850. 1 supply-side factor for proto-industrial activities. The implication of this early-Meiji study for the estimation of non-primary shares in gross domestic output of the early modern period is, therefore, that both population density and the urbanisation rate may be used to obtain better estimates of the share of secondary- or tertiary-sector output as long as the age of proto-industrialisation is concerned. Thus, this new methodology will be explored with an updated set of data for the Tokugawa and Meiji periods. First, an early-Meiji regional panel database will be constructed for the period for 1874, 1890 and 1909 from more diversified data sources at prefectural, rather than regional levels in order to conduct regression analysis of the regional panel data with the two explanatory variables plus several dummy variables. Then, the results will enable us to compute the shares of secondaryand tertiary-sector output by applying population from the existing estimates of population density and the urbanisation rate for the benchmark years before 1850. 2. Methodology, data availability and the proto-industrial context Let us begin with the discussion of difficulties associated with the use of Malanima’s method in the Tokugawa Japanese context. The underlying idea of Malanima’s is that the level of urbanisation was a proxy for the growth of non-agricultural activities. Although this is to be fine-tuned by the changing non-agricultural share in the labour force in a later stage of estimation, the first step is explore if there was a correlation between those two variables. With a regression coefficient derived from time-series analysis of the two variables for modern Italy in the period between Unification and World War II, he has applied the coefficient to pre-modern urbanisation estimates so as to obtain a series of the non-agricultural share for the 1300-1861 period (Malanima 2003, p. 281: 2011, p. 181). According to his latest specification of the formula (Malanima 2011, p. 183), Yna(t)/Y(t) = 15.371 + 1.82U (1) where Yna(t)/Y(t) Yna/Y(t) stands for the share of non-agricultural product and U for the rate of urbanisation (both in percentages), one percentage-point rise in urbanisation must have led to a 1.82 percentage-point increase in the share of the non-primary sector in the total product. If applied to the Japanese data for the period between 1600 and 1874, however, this formula would produce a long-run decline in the non-primary share during the latter half of the Tokugawa period as the level of urbanisation, having reached a peak in the late sixteenth century, exhibited a 2 downward trend towards the end of the period in question. The phenomenon was brought to light first by Tom Smith in his seminal paper on pre-modern economic growth, who found that 24 out of 35 castle towns, for which he assembled population data for the period from c.1700 to 1850, lost its commoner population considerably, seven saw its population neither increased nor decreased markedly, and only four grew in size (Smith 1973). According to our own estimates of urbanisation rate, defined as the proportion of people living in settlements with population of 10,000 or over (reported in table A.2B), the national level of urbanisation increased from 6% in 1600 to 14% in 1650, but since then started declining gradually to 13% in 1750, to 12% in 1850 and then to 10% in 1874. What we know about the period from c.1700 to 1850, however, is that rural industry and commerce grew during that period. There is evidence that in many cases, while the provincial city declined, the population in the rest of the province increased, suggesting that much of non-agricultural income must have been earned by peasants in the form of by-employment (for the importance of farm family by-employments, see for example Smith 1969). As a result of this change or “rural-centred growth” as Smith termed it, therefore, the non-agricultural share must have reached a considerable level towards the end of the Tokugawa period. According to an input-output table constructed by Shunsaku Nishikawa for a daimyo domain called Chōshū (a region that stood close to the median according to prefectural-level income estimates for 1874), the non-agricultural share of income estimated on a value added basis stood at 39% in the 1840s, despite the fact that 75% of the region’s households were agricultural (Nishikawa 1987).2 This effect of rural-centred growth in the age of de-urbanisation will be missed out if the estimation of non-agricultural output be made only on the basis of urbanisation trends. As hinted earlier, however, Malanima does pay attention to this effect. In his 2011 article, reference is made to the progress of the Italian silk industry, in which a number of peasant families were involved, and its possible impact on the share of secondary- and tertiary-sector output. In order to capture this aspect of the “progress”, he allows the non-agricultural share of the labour force to change over time (Malanima 2011, pp. 184-85). Thus, Yna(t)/Y(t) = (Yna(t0)/Y(t0)) × (Lna(t)/L na(t0)), (2) where Lna stands for the share of the non-agricultural labour force with t0 being the base year and t varying from t-50, t-100 and so on. 2 The non-agricultural share in the total product (including intermediate inputs) was 52%. Note that Nishikawa’s “non-agricultural” category includes forestry, fishing and marine products. 3 Will this work for the Japanese case? It will probably not, as data availability can be a serious problem. First, little is known about the Lna levels in the Tokugawa past: no serious estimates have been made except for status-based classifications of the population. Second, even when some indications about the distribution of the commoner population into peasants, artisans and merchants are available, it is difficult to quantify the significance of non-agricultural by-employment, which was widespread in the countryside. As for the period after 1874, Saito and Settsu (2010) gives estimates for the sectoral shares of the labour force, which has been made possible by the use of two prefectural-level matrix tables, for 1879 and 1825 respectively, of principal and subsidiary occupations. In 1885, for example, it is revealed that the revised estimates of the secondary- and tertiary-sector shares were both 18%, 2 to 3 percentage points higher than the previous estimates based only on information about principal occupations. Also revealed is that the overall percentage by-employed of the labour force calculated from the 1879 data for a silk-producing region was 19.5% (with intra-sectoral by-employments excluded). But, unfortunately, this kind of information about subsidiary employments is virtually non-existent in Tokugawa times. Given these difficulties, population density may be introduced as another proxy for the non-primary share of the labour force, which represents supply-side factors in the thesis of proto-industrialisation. It is widely known that population density could vary significantly across districts even in a totally rural region, and more importantly that industrialised rural districts tend to show up as highly densely populated clusters on the population density map.3 It implies that cross-sectional, rather than simple time-series analysis is needed in order to obtain appropriate coefficients used for the estimation. This consideration leads us to economic geography of proto-industrial Japan. One of the drivers of Japan’s proto-industrialisation was, as in many other cases, textiles. Cotton and silk were two of the most dynamic proto-industrial commodities in the period from the late eighteenth to the early twentieth century, but cotton was to the warmer west and silk to the east. Cotton was cultivated and woven mostly in lowlands of central and western provinces while silk reeling and weaving took root in upland districts of central and eastern provinces. As a result, the relationship between food production (i.e. grain growing) and proto-industry varied with this difference in economic geography, so did the relationship between proto-industry and population density (Saito 1983). However, the latter relationship may have been influenced also by the regional 3 See for example early nineteenth-century district-level Belgian and English population density maps prepared by Eric Buyst and Leigh Shaw-Taylor, respectively, for O. Saito and L. Shaw-Taylor, eds., Occupational Structure and Industrialisation in a Comparative Perspective (forthcoming). 4 level of urbanisation, representing demand-side factors. The urbanisation rate was generally higher in the east than in the west. Of course, the percentage urban was considerably higher in the Kinai with both Kyoto and Osaka (30%) and also in South Kanto with Edo (19%), than in any other regions in 1874, but the average level of urbanisation was 6.9% for the rest of the west (i.e. western provinces other than the Kinai) whereas that was 8.4% for the rest of the east (both are weighted averages calculated from tables tables A.1 and A.2B). This rather unexpected finding may well have been a reflection that after the opening of the country into world trade the silk industry in the central and eastern provinces benefited greatly from exporting their products whereas the cotton trade in the west was under strong pressure from European imports. That said, however, there are factors that could have closed up the observed east-west differences. First, while cotton cultivation and spinning were hit hard by the Western impact, the weaving districts survived the challenge and many actually started growing in the early Meiji period. Second, some of those successful cotton districts were found on the eastern side the east-west boundary as well. The list at the end of the Tokugawa period included Niikawa (Toyama), Echizen (Fukui), Mōka and Sano (both Tochigi). Finally, the size of non-textile proto-industrial production should not be underestimated. Indeed, the largest single manufacturing industry in Tokugawa times was brewing and the brewing of rice wine, soy sauce and miso (fermented soybeans) were found in many areas on both sides of the boundary, together with other manufacturing activities such as paper making and clothing (see Saito and Tanimoto 1999; Shimbo and Saito 1999). All this suggests that the relationships between population density and urbanisation, on the one hand, and the secondary- or tertiary-sector share, on the other, varied across the eastern half as well as the western half of the country. It is therefore worth exploring the relationships cross-sectionally. As in the Malanima method, regression analysis is involved also in our methodology. But, given the nature of the tasks mentioned above, probably the best strategy to estimate the regression coefficients to be used for the estimation is to construct from Meiji statistics a prefectural-level panel database first. It will enable us to assign, when conducting regression analysis, year dummies for mid- to late Meiji benchmark years and prefectural dummies to Tokyo, Osaka and a few others, in which the impact of industrialisation or westernisation is thought to have been felt particularly strongly. The results from such panel data analysis with prefectures, not aggregated regions, as the unit of observations will provide better estimates with fuller confidence for the period before Meiji. 3. The Meiji-period database 5 The panel dataset includes prefectural output and population figures for the three benchmark years, 1874, 1890 and 1909. For prefectural GDP we have adopted new estimates by Settsu (2014). Since his estimates are sector specific, our non-agricultural shares are also sector specific: the secondary-sector share and the tertiary-sector share can be separately calculated for all the prefectures. Urban population data for 1874 are not available, which are interpolated by using the rate of population growth between 1873 and 1879. A topographical book (Nihon chishi teiyō) gives population figures for cities with 10,000 or more for 1873 and a statistical report compiled by the Army’s General Staff Office (Kyōbu seihyō) for 1879. For 1890 and 1909 the Population Statistics of the Japanese Empire (Nihon Teikoku jinkō seitai tōkei) series are used. There were boundary changes for a number of cities including six metropolitan cities, for which the corrected figures reported in Umemura et al. (1983) are used. The total areas of prefectures are taken from the Population Statistics, while the corresponding population totals are from Settsu (2014). [Insert figures 1-2 here] The key explanatory variables in the database are population density and the rate of urbanisation. Both distributions are highly skewed. Figure 1 displays a scatter gram of population density set against the level of urbanisation in 1874. Tokyo is in the upper-right corner of the graph and Osaka on top in the middle, but all others cluster within the lower-left quarter: note that the lowest low on the urbanisation axis was 0% (Saitama). From the graph two observations may be made. First, the patterns of the skewed distributions suggest that if transformed logarithmically or logit transformed both will get closer to the normal, although this should not be taken to mean that the correlation would also become closer (see figure 2). This in fact leads us to the second point. There is no clear correlation between the two variables if Tokyo and Osaka are excluded, indicating that in the early Meiji period urbanisation was still not the chief determinant of population density. The finding lends support to our supposition that both population density and urbanisation variables were separately at work in accounting for the non-agricultural shares of output. A pair of the scatter grams of both population density and the urbanisation rate, set against the secondary and tertiary sectoral shares, indicates that in both cases the correlation is a positive one (figures 3-4). [Insert figures 3-4 here] The number of prefectures that appeared in the 1874 statistics is 63 including three 6 metropolitan prefectures of Tokyo, Osaka and Kyoto, but the number of prefectures was reduced to 47 in the mid- and late-Meiji years of 1890 and 1909. With Hokkaido and Okinawa excluded from the analysis because their economic conditions and development levels were vastly different from other prefectures of the period in question, and also with Saitama merged into its neighbouring prefecture of Gunma so as to avoid the zero to be logit transformed, the remaining 60 are grouped into 44. Among the 44 prefectures, as the discussion at the end of the previous section suggests, there were clear east-west differences, as a result of which the two variables may have had a differential effect on the secondary- and tertiary-sector shares between the east and west. In order to include in regression analysis this aspect of interactions, the prefectures are divided into the east and west zones as set out in table A.3 (which also shows how early-Meiji prefectures are matched to Tokugawa-period provinces). Also needed is the identification of prefectures which had already been affected by the uneven process of industrialization and westernisation. Obviously Tokyo had received from the very beginning of the new Meiji era the impact of the government’s modernisation drive, so did Osaka. Then Osaka started to undergo the transformation after the late 1880s when Japan’s “industrial revolution” took off, whose influence diffused to Aichi and Fukuoka by 1909. These “modern” prefectures, together with the year dummies for 1890 and 1909, will be treated separately in the regression analysis. 4. Regression analysis On the basis of this Meiji-period database, regression analysis is conducted for the secondary-sector and the tertiary-sector shares separately. The same set of variables will be included on the right-hand side of the equation, i.e. the two major variables of population density and the urbanisation rate, and the prefectural and year dummy variables, but it is expected that while the two major variables will turn out to be at work simultaneously in both cases, the two may behave somewhat differently. Given the nature of the sectors, it is likely that while for secondary-sector output growth the supply-side variable (population density) had a comparatively greater effect than the demand-side variable (urbanisation), the other way round was the case for output growth in the tertiary sector. The secondary-sector share variable (Sshare) used here is defined in relation to the size of the primary sector whose estimates are less problematic for the Tokugawa period. Sshare is, therefore, measured as the proportion of secondary-sector output to the sum of primary- and secondary-sector 7 output. Thus, the basic regression equation is as follows: !"! !"ℎ!"# ! = !! + !! !"# + !! !" + !! !! + !! !! + !! ! + !! !"1 1 − !"ℎ!"# 1−! (3) + !! !"2 + ! where D stands for population density (measured in terms of the number of persons per chō (1 chō equals to 0.99 hectares), U for the urbanization rate, XD for lnD’s interaction with the east-west dummy (east = 1), and XU for logitU’s interaction with the east-west dummy. Also included is a set of dummy variables, i.e. a prefectural dummy for “modernised” prefectures and two year dummies for 1890 and 1909 (m, yr1, and yr2 respectively). Just for comparison, the dependent variable that is not logit transformed is also regressed on the same right-hand variables. The results for these two specifications are set out in table 1. [Insert Table 1 here] The basic regression specification for the tertiary sector is essentially the same as equation (3): !"! !"ℎ!"# ! = !! + !! !"# + !! !" + !! !! + !! !! + !! ! + !! !"1 1 − !"ℎ!"# 1−! (4) + !! !"2 + ! where Tshare is the proportion of tertiary-sector output to the sum of primary and tertiary sector output. The other variables are the same as for the secondary sector. The results of this regression are shown in table 2. [Insert Table 2 here] The results for the two major explanatory variables and the set of dummy variables in the two tables are all satisfactory with the expected signs and reasonably high t ratios (except for the urbanisation variable in the secondary sector equation, which is statistically significant only at the 10% level). This means, first, that both population density and urbanisation were joint determinants of secondary- and tertiary-sector growth. Second, the population density effect seems to have been 8 relatively greater for secondary-sector output than for tertiary-sector output: if the results for equation (3) in table 1 is compared with those for the same equation in table 2, the size of the density coefficient relative to that of the urbanisation coefficient in the case of the secondary sector was about twice as large as in the tertiary sector. To put it simply, the supply-side factor was crucial for secondary-sector growth while it was the urban influence that was comparatively more important for tertiary-sector growth. 5. Back projection for Tokugawa-period national accounting Based on specification (5) in tables 1 and 2, the non-agricultural sector shares are back projected to the Tokugawa period. The benchmark years are 1600, 1650, 1720, 1750, 1800, 1850, and 1874. It should be remembered, however, that the age of proto-industrialisation and de-urbanisation began after 1720, not before. It is well known that the eighth Shogun, Yoshimune, as one of his government’s reform effort tried to encourage domestic production by lifting in 1720 some of the restrictions on the import of foreign books (one of the “seclusion” policy measures adopted in the 1630s). One area he was particularly concerned with was horticulture, as a result of which many Chinese books on botany and horticulture were imported. Since the list of imports in the seventeenth century had included raw silk, sugar and ginseng, the target was to “substitute domestic goods for imports”. This import substitution effort is said to have been particularly successful for raw silk: “from the 1720s on, the silk output was sufficient to start driving down the price of imports”.4 Although it is naive to link the government’s effort to this output increase directly, it seems certain that silk reeling did spread in rural villages from the early eighteenth century onwards. In other words, when back projected to 1650 and also to 1600, we should drop the population density term out of the estimated equation, as it was from 1720 onwards when that effect started to work significantly. Thus the specification used varies from period to period: For 1720-1850, !"! !"ℎ!"# =− 1 − !"ℎ!"# .7411 + 0.434!"# + 0.098!" 4 ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!(5) 1−! Totman (1993), p. 312, quoting Ohba and Toby’s article on “Seek knowledge throughout the world” and Tashiro’s on “Tsushima han’s Korean trade”. 9 !"! !"ℎ!"# ! = −0.173 + 0.4535!"# + 0.3305!" !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!(6) 1 − !"ℎ!"# 1−! For 1600 and 1650, !"! !"ℎ!"# ! = −1.7411 + 0.098!" !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!(7) 1 − !"ℎ!"# 1−! !"! !"ℎ!"# ! = −0.173 + 0.3305!" !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!(8) 1 − !"ℎ!"# 1−! Specifications (7) and (8) implies that for periods before the proto-industrial phase we have adopted the Malanima model. Tokugawa-period data necessary for the backward estimation are primary-sector output, population density, and urbanisation rates. (1) For primary-sector output, kokudaka data with adjustments in one form or another have been utilized by many scholars. Here, however, our own new estimates will be used (Takashima 2014), shown in table A.4. (2) Data for the calculation of population density are taken from Kito (1996) for the Tokugawa-period benchmark years and from Settsu (2014) for 1874. Both are region-specific, so that check can be made at regional levels. For the seventeenth century, however, Kito’s population estimates appear to be so low that Saito’s estimate is adopted for 1600,5 with the figure for 1650 interpolated linearly between 1600 and 1720. (3) Urbanisation rates are estimated for regions first. For cities whose population data are available from previous studies we adopted their estimates; for other cities, the population totals reported in the Chishi teiyō for 1872 are extrapolated backwards by using urban population growth rates for each region calculated from Saito (1984). Once all the estimates are made, the proportion of settlements with population of 10,000 inhabitants or over is calculated for the eastern and the western half, and then for the entire nation (the results are set out in table A.2). [Insert Table 3 here] Our back projection results for the 1600-1874 period are shown in table 3 and in figure 7 graphically. They are in 1990 international dollars and compared with Maddison’s estimates for the same period. The Maddison estimates were made by making an assumption that Japan’s non-agricultural output grew faster than agricultural output over the period between 1500 and 1820 5 Unpublished, but the estimates are quoted by Farris (2006), pp. 231, 262. For the background of Saito’s new estimation, see his forthcoming article. 10 (Maddison 2001, pp. 256-58). This implies that although the growth rate differs from sub-period to sub-period, moderate growth persisted throughout the Tokugawa period. In contrast, our estimates are far more articulated. While our GDP per capita estimate was a little higher than Maddison’s in 1600, it declined over the seventeenth century, reaching a trough around 1720. Since then, however, there took place growth until 1850, thanks to the emergence of rural-centred development. The growth was moderate, but a little stronger than Maddison suggested. After the opening of the country into world trade the growth accelerated. The rate of growth between 1850 and 1874 was not very different between the two estimates, but the level of our GDP per capita figure exceeded that of Maddison’s in 1874. [Insert Figure 5 here] Table 4 breaks down the estimated national product into the three sectors. While the primary-sector share declined from 67.8% in 1600 to 58.7% in 1874, there was a gradual but steady increase in the secondary-sector share from 9.1% to 10.9% and a comparatively more marked increase in the tertiary-sector share from 23.1% to 30.4%. Tokugawa Japan’s tertiary-sector growth was associated with the seventeenth-century rise in the level of urbanisation, but the share of secondary-sector output hardly rose during the seventeenth and eighteenth centuries. Much of the advance in that share was made during the nineteenth-century phase of the proto-industrialisation process. 6. Conclusion In our effort to estimate non-primary sector output shares in Tokugawa times, we have identified the period of rural-centred growth and de-urbanisation in the latter half of the whole 270-year period. While the Maddison estimates of GDP per capita failed to capture this phase of development, the new estimates of both per capita GDP and its sectoral distribution have successfully accommodated the emergence of such a historically distinct phase in Japan’s economic history. One may wonder if our estimates are consistent with Shunsaku Nishikawa’s Chōshū studies because Nishikawa’s estimate of the non-agricultural share of output was as high as 39% for the 1840s. In fact, if re-calculated on the primary, secondary and tertiary basis, rather than the non-agricultural basis, the Chōshū share of non-primary sector output turns out to be 31%,6 a little lower than our 1850 6 This re-calculation can be done only from his 13-sector Input-Output table. See Nishikawa (2012), ch.12. 11 estimate of 38% in table 4 (= 9.5 + 28.8). The more substantive difference is found in that Nishikawa’s profile of the Chōshū economy was more industrial while, according to our estimates, the late Tokugawa economy looks less industrial but more service-oriented. Our new series have also suggested that seventeenth-century Japan experienced negative growth in per capita terms, which was not apparent in the Maddison estimates. Whether or not this downturn was real, and if it was, then whether it was Malthusian in nature or something that should be accounted for by a different set of factors – these are remaining big issues. 12 Tables and Figures Figure 1. Population density and the urbanisation rate: 45 prefectures in 1874 6.0 5.0 Population density 4.0 3.0 2.0 1.0 0.0 0.0 0.1 0.2 0.3 0.4 Urbanisation rate Source: Table A.2. 13 0.5 0.6 0.7 Figure 2. Population density (log transformed) and the urbanisation rate (logit transformed): 44 prefectures in 1874 2.0 1.5 Population density 1.0 0.5 0.0 -0.5 -1.0 -5.0 -4.0 -3.0 -2.0 Urbanisation rate Source: Table A.2. 14 -1.0 0.0 1.0 Figure 3. Population density (log transformed) and the secondary- and tertiary-sector shares (logit transformed): 44 prefectures in 1874 2.0 1.0 Share 0.0 -1.0 -2.0 -3.0 LogitSshare LogitTshare -4.0 0.0 1.0 2.0 3.0 4.0 Population density Source: Table A.2A. 15 5.0 6.0 Figure 4. The rate of urbanisation (logit transformed) and the secondary- and tertiary-sector shares (logit transformed): 44 prefectures in 1874 2.0 1.0 Share 0.0 -1.0 -2.0 -3.0 LogitSshare LogitTshare -4.0 -5.0 -4.0 -3.0 -2.0 -1.0 Urbanisation rate Source: Table A.2B. 16 0.0 1.0 0.0259 [2.65]*** Urbanization rate 0.7695 0.1771 [6.23]*** 0.1411 [7.73]*** 0.7746 0.1861 [6.71]*** 0.1203 [7.16]*** 0.7793 0.1776 [6.38]*** 0.1338 [7.40]*** 0.0755 [4.36]*** 0.2264 [6.54]*** -0.0673 [-2.56]** -0.0143 [-1.91]* 0.0295 [3.06]*** 0.0873 [5.83]*** (4) 0.7414 -1.7411 [-10.95]*** 0.8265 [8.69]*** 0.4738 [5.38]*** 1.0521 [5.21]*** 0.0980 [1.79]* 0.4340 [5.37]*** (5) 0.7440 -1.7796 [-11.10]*** 0.8871 [8.62]*** 0.5429 [5.48]*** 1.0219 [5.06]*** -0.0646 [-1.50] 0.1146 [2.06]** 0.4469 [5.52]*** (6) 0.7432 -1.7407 [-10.98]*** 0.8057 [8.39]*** 0.4586 [5.18]*** 1.0303 [5.10]*** -0.2075 [-1.37] 0.0977 [1.79]* 0.4758 [5.52]*** (7) 0.7455 -1.7782 [-11.12]*** 0.8653 [8.33]*** 0.5263 [5.29]*** 1.0015 [4.96]*** -0.2010 [-1.33] -0.0629 [-1.46] 0.1138 [2.05]** 0.4870 [5.66]*** (8) 17 Notes: The dependent valuable in columns (1)-(4) is share of the added value of secondary sector in the sum of added value of primary and secondary sectors. The dependent valuable in columns (5)-(8) is obtained by converting (1)-(4) into a logit value respectively. *** denotes significant at the 1 per cent level. ** denotes significant at the 5 per cent level. * denotes significant at the 10 per cent level. All observations are 132. Sources: See text. 0.7644 0.1860 [6.55]*** Constant Adjusted R2 0.1272 [7.49]*** Year 1909 dummy 0.0601 [3.88]*** 0.0651 [4.14]*** Year 1890 dummy 0.0810 [4.61]*** 0.2330 [6.59]*** 0.2332 [6.51]*** 0.2402 [6.67]*** Prefectural dummy (Modernized=1) 0.0258 [2.70]*** 0.0848 [5.62]*** (3) -0.0687 [-2.59]** -0.0149 [-1.94]* 0.0297 [3.02]*** 0.0739 [5.15]*** (2) Population density × Regional dummy (East Japan=1) Urbanization rate × Regional dummy (East Japan=1) 0.0710 [4.92]*** Population density (1) Table 1. OLS regression for the determinant of share of the secondary sector 0.0706 [7.67]*** Urbanization rate 0.8103 0.4584 [16.88]*** 0.8093 0.4549 [16.93]*** 0.8088 0.4585 [16.82]*** 0.0511 [3.01]*** 0.0602 [3.40]*** 0.1121 [3.26]*** -0.0031 [-0.12] 0.0059 [0.81] 0.0691 [7.31]*** 0.0939 [6.39]*** (4) 0.8258 -0.1730 [-1.41] 0.2873 [4.23]*** 0.3099 [4.23]*** 0.5790 [3.72]*** 0.3305 [7.84]*** 0.4535 [7.74]*** (5) 0.8260 -0.1513 [-1.22] 0.2484 [3.24]*** 0.2758 [3.46]*** 0.5961 [3.82]*** 0.0364 [1.09] 0.3212 [7.47]*** 0.4463 [7.13]*** (6) 0.8244 -0.1730 [-1.41] 0.2869 [4.18]*** 0.3093 [4.15]*** 0.5784 [3.69]*** -0.0061 [-0.05] 0.3305 [7.81]*** 0.4548 [6.80]*** (7) 0.8246 -0.1512 [-1.21] 0.2476 [3.19]*** 0.2747 [3.39]*** 0.5951 [3.78]*** -0.0099 [-0.08] 0.0365 [1.09] 0.3212 [7.44]*** 0.4483 [6.68]*** (8) 18 Notes: The dependent valuable in column (1)-(4) is share of the added value of secondary sector in the sum of added value of primary and secondary sectors. The dependent valuable in columns (5)-(8) is obtained by converting (1)-(4) into a logit value respectively. *** denotes significant at the 1 per cent level. All observations are 132. Sources: See text. Adjusted R2 0.8108 0.4549 [17.00]*** Constant Year 1909 dummy 0.0575 [3.83]*** 0.0658 [4.04]*** 0.0577 [3.89]*** 0.0661 [4.13]*** Year 1890 dummy 0.0514 [3.06]*** 0.0605 [3.47]*** 0.1094 [3.20]*** 0.1125 [3.29]*** 0.1097 [3.23]*** Prefectural dummy (Modernized=1) 0.0706 [7.64]*** 0.0949 [6.50]*** (3) -0.0025 [-0.10] 0.0059 [0.81] 0.0691 [7.34]*** 0.0932 [6.80]*** (2) Population density × Regional dummy (East Japan=1) Urbanization rate × Regional dummy (East Japan=1) 0.0944 [6.94]*** Population density (1) Table 2. OLS regression for the determinant of share of the tertiary sector Table 3. GDP per capita in Japan, 1600-1874: Maddison’s and our estimates compared (1990 international dollars) Maddison 1600 Our estimates 520 605 1650 1700 619 570 1720 570 1750 622 1800 703 1820 669 1850 679 777 1874 756 860 Rates of growth 1600-1700 1700-1820 0.09% 0.13% 1600-1650 0.05% 1650-1720 -0.12% 1720-1750 0.29% 1750-1800 0.25% 1820-1850 0.05% 1800-1850 0.20% 1850-1874 0.45% 1850-1874 0.42% 1600-1700 0.09% 1600-1720 -0.05% 1700-1874 0.16% 1720-1874 0.27% Sources: Maddison (2001), table B-21, p. 264; for Japan, see text. 19 Figure 5. GDP per capita in Japan, 1600-1874: Maddison’s and our estimates compared (1990 international dollars) 1000 800 600 400 New estimates Maddison 200 0 1600 1650 1700 1750 Source: Table 3. 20 1800 1850 Table 4. Output per capita in koku and its sectoral distribution: Japan, 1600-1874 1600 1650 1720 1750 1800 1850 1874 Japan (koku per capita) 2.65 2.72 2.5 2.73 3.09 3.41 3.77 Share Primary 0.678 0.624 0.627 0.617 0.619 0.618 0.587 Secondary 0.091 0.091 0.093 0.093 0.093 0.095 0.109 Tertiary 0.231 0.284 0.280 0.289 0.288 0.288 0.304 Sector Source: See text. 21 Appendix tables Table A.1. Population by region, 1600-1874 (1,000 koku) Region 1600 1650 1700 1720 1730 1750 1800 1850 1874 1 East Tohoku — — — 2,333 2,307 2,203 1,912 1,993 2,419 2 West Tohoku — — — 1,043 1,041 1,016 1,030 1,117 1,263 3 North Kanto — — — 2,190 2,189 2,143 1,691 1,621 1,820 4 South Kanto — — — 3,902 3,927 3,914 3,508 3,737 3,782 5 Niigata / Hokuriku — — — 2,593 2,608 2,593 2,739 3,093 3,457 6 Tosan — — — 1,251 1,269 1,284 1,356 1,435 1,471 7 Tokai — — — 2,623 2,639 2,633 2,761 2,903 2,799 8 Kinai — — — 2,696 2,658 2,567 2,446 2,366 2,184 9 Around Kinai — — — 3,683 3,658 3,549 3,498 3,594 3,562 10 Sanin — — — 837 857 887 1,006 1,052 1,029 11 Sanyo — — — 2,407 2,432 2,445 2,661 2,935 3,042 12 Shikoku — — — 1,822 1,850 1,875 2,065 2,345 2,456 13 North Kyushu — — — 2,364 2,387 2,393 2,411 2,606 2,996 14 South Kyushu — — — 1,294 1,334 1,406 1,498 1,683 2,236 17,000 21,846 28,074 31,037 31,156 30,908 30,582 32,481 34,516 Total Sources and notes: Year 1600 from Saito’s new estimations quoted by Farris (2006). Years 1750 from Kito (1996). Year 1874 from Settsu (2014). Other years are derived by linear interpolation based on the population estimates by Kito (1996). 22 Table A.2. Population density and urbanisation rate, 1600-1874 A. Population density, 1600-1874 (per cho) Region 1600 1650 1700 1720 1730 1750 1800 1850 1874 1 East Tohoku — — — 0.51 0.50 0.48 0.42 0.43 0.53 2 West Tohoku — — — 0.52 0.52 0.51 0.51 0.56 0.63 3 North Kanto — — — 1.22 1.22 1.19 0.94 0.90 1.01 4 South Kanto — — — 2.78 2.80 2.79 2.50 2.66 2.69 5 Niigata / Hokuriku — — — 1.02 1.03 1.02 1.08 1.22 1.36 6 Tosan — — — 0.57 0.58 0.58 0.62 0.65 0.67 7 Tokai — — — 1.36 1.37 1.37 1.43 1.51 1.45 8 Kinai — — — 3.89 3.84 3.70 3.53 3.41 3.15 9 Around Kinai — — — 1.43 1.42 1.37 1.35 1.39 1.38 10 Sanin — — — 0.82 0.83 0.86 0.98 1.03 1.00 11 Sanyo — — — 1.16 1.17 1.18 1.28 1.42 1.47 12 Shikoku — — — 0.99 1.01 1.02 1.12 1.28 1.34 13 North Kyushu — — — 1.39 1.40 1.41 1.42 1.53 1.76 14 South Kyushu — — — 0.53 0.54 0.57 0.61 0.68 0.91 0.59 0.76 0.97 1.08 1.08 1.07 1.06 1.13 1.20 Total B. Urbanisation rate, 1600-1874 (%) Region 1600 1650 1700 1720 1730 1750 1800 1850 1874 1 East Tohoku — — — 6.6 7.3 8.1 9.7 9.3 6.5 2 West Tohoku — — — 10.2 10.3 10.7 10.6 10.8 10.7 3 North Kanto — — — 2.5 2.6 2.6 3.4 4.8 4.6 4 South Kanto — — — 25.3 27.7 34.2 38.2 35.7 19.0 5 Niigata / Hokuriku — — — 10.3 10.7 12.2 12.4 12.5 13.0 6 Tosan — — — 3.1 3.8 3.8 3.6 3.5 3.3 7 Tokai — — — 7.9 7.9 8.1 7.1 6.9 8.6 8 Kinai — — — 34.7 35.8 38.5 36.8 34.8 30.2 9 Around Kinai — — — 7.4 7.4 7.6 7.3 6.9 6.1 10 Sanin — — — 8.2 8.2 8.3 7.8 7.9 6.6 11 Sanyo — — — 7.1 7.0 6.8 6.0 5.1 7.2 12 Shikoku — — — 6.1 6.0 5.8 5.5 5.1 7.6 13 North Kyushu — — — 6.4 6.4 6.4 5.6 4.5 6.6 14 South Kyushu — — — 6.9 6.9 7.5 8.9 7.8 7.4 6.1 13.5 12.0 11.6 12.1 13.4 13.3 12.4 10.3 Total Notes: 1 cho = 0.00991736 km2. Urban population includes persons living in settlements of at least 10,000. Sources: See text. 23 Tosan Tokai Kinai 6 7 8 Sanyo Shikoku North Kyushu South Kyushu 11 12 13 14 Higo, Hyuga, Osumi, Satsuma Chikuzen, Chikugo, Hizen, Iki, Tsushima, Buzen, Bungo Awa, Sanuki, Iyo, Tosa Mimasaka, Bizen, Btchu, Bingo, Aki, Suo, Nagato Inaba, Hoki, Izumo, Iwami, Oki Omi, Iga, Ise, Shima, Kii, Harima, Awaji, Tanba, Tango, Tajima Izu, Suruga, Totomi, Mikawa, Owari, Mino Yamashiro, Yamato, Izumi, Kawachi, Settsu Kai, Shinano, Hida Sado, Echigo, Etchu, Noto, Kaga, Echizen, Wakasa Musashi, Sagami, Kazusa, Shimosa, Awa Hitachi, Kozuke, Shimotsuke Dewa (Uzen, Ugo) Mutsu (Rikuo, Rikuchu, Rikuzen, Iwashiro, Iwaki) Tokugawa period (kuni: old province) Shirakawa, Miyazaki, Kagoshima Myodo (ex-Awa and ex-Samuki), Ehime. Kochi Fukuoka, Mizuma, Kokura, Saga, Nagasaki, Oita Hokujo, Okayama, Oda, Hiroshima, Yamaguchi Tottori, Shimane, Hamada Shiga, Mie, Watarai, Shikama, Toyooka, Wakayama, Myodo (ex-Awaji) Ashigara (ex-Izu), Hamamatsu, Shizuoka, Aichi, Gifu Kyoto. Osaka, Nara, Hyogo, Sakai Yamanashi, Nagano, Chikuma, Tokyo, Saitama, Niihari (ex-Shimosa), Chiba, Kumagaya (ex-Musashi), Kanagawa, Ashigara (ex-Sagami) Niigata, Aikawa, Niikawa, Ishikawa, Tsuruga Ibaraki, Niihari (ex-Hitachi), Tochigi, Kumagaya (ex-Kozuke) Akita, Yamagata, Sakata, Okitama Aomori, Iwate, Miyagi, Mizusawa, Fukushima, Iwamae, Wakamatsu Early Meiji (fu, ken: prefecture) Miyazaki, Kumamoto, Kagoshima Fukuoka, Nagasaki, Saga, Oita Tokushima, Kagawa, Ehime, Kochi Okayama, Hiroshima, Yamaguchi Shiga, Mie, Wakayama, Hyogo (ex-Tajima and some part of ex-Tanba), Kyoto (ex-Tango, and some parts of ex-Tanba) Tottori, Shimane Kyoto (ex-Yamashiro), Osaka, Hyogo (some parts of ex-Settsu) Shizuoka, Aichi, Gifu (ex-Mino) Yamanashi, Nagano, Gifu (ex-Hida) Niigata, Toyama, Ishikawa, Fukui Tokyo, Saitama, Chiba, Kanagawa Ibaragi, Tochigi, Gunma Akita, Yamagata Aomori, Iwate, Miyagi, Fukushima Current prefecture 24 Notes and sources: Excluding Ezochi and Ryukyu (currently Hokkaido and Okinawa prefecture). Regional division is based on the regional devisions from Saito (1983), Kito (1996). Adjustment of the prefectural border was made by using the table of the transition of prefecure/county in Meiji bunken shiryo kankokai (1964). Sanin 10 Around Kinai Niigata / Hokuriku 5 9 South Kanto 4 West Japan North Kanto 3 East Tohoku West Tohoku East Japan 2 1 East/West Table A.3. Regional division of Japan Table A.4. Agricultural production (Incl. the forestry and fishery sector), 1600-1874 (1,000 koku) Region 1600 1650 1700 1720 1730 1750 1800 1850 1874 1 East Tohoku 2,485 3,108 4,689 4,995 5,156 5,492 6,426 6,894 6,696 2 West Tohoku 1,802 2,110 2,437 2,528 2,574 2,670 2,923 3,328 3,640 3 North Kanto 2,559 2,731 2,951 3,034 3,077 3,164 3,391 3,893 4,364 4 South Kanto 1,676 2,795 3,594 3,794 3,897 4,114 4,704 5,663 6,414 5 Niigata / Hokuriku 4,214 4,468 5,255 5,405 5,481 5,637 6,046 6,849 7,557 6 Tosan 521 1,310 2,095 2,194 2,245 2,351 2,637 3,066 3,379 7 Tokai 1,961 2,727 3,694 3,829 3,898 4,039 4,415 5,041 5,539 8 Kinai 1,550 1,801 2,038 2,184 2,261 2,423 2,876 3,686 4,376 9 Around Kinai 4,192 4,439 5,020 5,247 5,364 5,606 6,257 7,621 8,904 10 Sanin 1,336 1,373 1,534 1,616 1,659 1,748 1,991 2,181 2,216 11 Sanyo 1,895 2,427 3,621 3,759 3,830 3,975 4,362 5,546 6,893 12 Shikoku 1,090 1,813 2,784 2,979 3,082 3,298 3,901 4,928 5,768 13 North Kyushu 2,866 3,310 3,935 4,101 4,187 4,364 4,837 5,553 6,078 14 South Kyushu 2,469 2,654 2,902 3,044 3,118 3,271 3,685 4,209 4,528 30,616 37,065 46,550 48,708 49,828 52,151 58,452 68,457 76,351 Total Sources: See text. 25 Table A.5. Output per capita in koku for eastern and western Japan, 1600-1874 1600 1650 1720 1750 1800 1850 1874 The east - - 2.53 2.79 3.26 3.52 3.60 The west - - 2.48 2.68 2.92 3.31 3.94 2.65 2.72 2.5 2.73 3.09 3.41 3.77 Japan Source: See text. Table A.6. Output per capita in koku and its sectoral distribution for eastern and western Japan, 1600-1874 Sector The east The west Japan 1600 1650 1720 1750 1800 1850 1874 Primary 0.640 0.624 0.625 0.621 0.614 Secondary 0.090 0.090 0.089 0.090 0.107 Tertiary 0.269 0.285 0.286 0.288 0.278 Primary 0.613 0.610 0.612 0.615 0.562 Secondary 0.096 0.096 0.097 0.099 0.112 Tertiary 0.291 0.294 0.290 0.287 0.326 Primary 0.678 0.624 0.627 0.617 0.619 0.618 0.587 Secondary 0.091 0.091 0.093 0.093 0.093 0.095 0.109 Tertiary 0.231 0.284 0.280 0.289 0.288 0.288 0.304 Source: See text. 26 References Official sources Rikugun Sanbōkyoku Sanbōkyoku. ed. (1875), Kyōbu seihyō Naimushō Chirikyoku Nipposha. ed. 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