Relation-based versus Rule-based Governance: an Explanation of the East Asian Miracle and Asian Crisis
AbstractThe paper aims to establish a theory of relation-based governance to explain both the "East Asian miracle" and the Asian crisis. The author first defines "relation" and "relation-based governance" in terms of information and enforcement, and then analyzes the nature and dynamics of relation-based governance, comparing its benefits and costs with that of "rule-based governance" in terms of observability/verifiability, commitment, and transaction costs. The theory is applied to examine a particular relation-based governance system-the Japanese model-to explain both the East Asian miracle and the Asian crisis. The framework provides foundations for studies of East Asian catching-up and economic development in general. Copyright Blackwell Publishing Ltd 2003.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 11 (2003)
Issue (Month): 4 (09)
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