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Corporate Governance, Crony Capitalism and Economic Crises: should the US business model replace the Asian way of "doing business"?

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  • Ajit Singh
  • Ann Zammit

Abstract

This paper considers the Greenspan/Summers/IMF (GSI) argument that the Asian way of doing business was the deep cause of the Asian crisis. The IMF reform programme for the crisis-affected Asian countries suggested they should abandon the Asian business model and adopt the US corporate model. The main findings are: (a) contrary to GSI doctrine, poor corporate governance and lack of competition are not common characteristics of the Asian business model; (b) the stock market-based US business model has severe limitations for developing country corporations, not least because of imperfect share prices and the imperfect market for corporate control. Copyright (c) 2006 The Authors; Journal compilation (c) 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Corporate Governance: An International Review.

Volume (Year): 14 (2006)
Issue (Month): 4 (07)
Pages: 220-233

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Handle: RePEc:bla:corgov:v:14:y:2006:i:4:p:220-233

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References

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Cited by:
  1. Andreas Hˆgberg, 2011. "Family Ownership and Regional Economic Development in Asia and Europe," ERSA conference papers ersa10p940, European Regional Science Association.

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