Description: The central theme of this book is to demonstrate that the relationship is based financial system was the hidden key factor to explain Japan's phenomenal economic growth after WWII by providing low cost of capital to major Japanese companies as a powerful edge in the export market. The book compares and contrasts the Japanese financial system in detail to that of the US and emphasizes the importance of relationship driven share ownership structure and the stock market behavior which valued highly the low profitability of Japanese management. Through the international comparison of corporate profitability and cost of capital, the book develops a theoretical framework which shows how the financial system affects directly and indirectly international economic competition and the macroeconomic performance of nations. Then the book critically reassesses the traditional Japanese approach to economic value creation as a catch-up model, including the analysis of current major economic difficulties facing Japan.

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