Veblen's Theory of Institutional Change: An Explanation of the Deregulation of Japanese Financial Markets.

In his 1915 essay "The Opportunity of Japan," Thorstein Veblen theorized that traditional Japanese institutions would undergo evolutionary change as Japan exploited borrowed industrial technology and became integrated into the global business enterprise system This article explains the recent liberalization of Japanese financial markets which followed Japan's rise to economic prominence within the context of Veblen's theory of institutional development of the enterprise system. The Japanese process of financial deregulation is reviewed. Veblen's predictions for Japan are Presented and an explanation provided for the liberalization of Japanese financial markets. [ABSTRACT FROM AUTHOR]