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A Comparative Study of Development Mechanisms in Korea and Taiwan: Introductory Analysis

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  • Hattori, Tamio
  • Sato, Yukihito
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    Abstract

    This article is the introduction to a special issue of The Developing Economies which presented the results of a research project by the Institute of Developing Economies that examined the development mechanisms in Korea and Taiwan. Our conclusion in this article is that their development mechanisms, despite their similar development patterns of export-led industrialization, have been essentially different: a government-led mechanism in Korea as opposed to a market-led mechanism in Taiwan. We verified this difference through comparative studies of the two economies covering trade balances, the growth of total factor productivity, the scale of enterprises and business groups, and the development processes of individual manufacturing sectors. In our explanatory discussion we propose that the difference in the mechanisms is based on: 1) the amount of accumulation in the economy at the time postwar industrialization started, 2) the relationship between government and society, and 3) the mechanism of social network formation.

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    Bibliographic Info

    Article provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its journal The Developing Economies.

    Volume (Year): 35 (1997)
    Issue (Month): 4 (December)
    Pages: 341-357

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    Handle: RePEc:jet:deveco:v:35:y:1997:i:4:p:341-357

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    Related research

    Keywords: Economic development; Private companies; Industrial management; Industrial policy; Korea; Taiwan;

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    References

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    1. Levy, Brian & Kuo, Wen-Jeng, 1991. "The strategic orientations of firms and the performance of Korea and Taiwan in frontier industries: Lessons from comparative case studies of keyboard and personal computer assembly," World Development, Elsevier, vol. 19(4), pages 363-374, April.
    2. Mody, Ashoka, 1990. "Institutions and Dynamic Comparative Advantage: The Electronics Industry in South Korea and Taiwan," Cambridge Journal of Economics, Oxford University Press, vol. 14(3), pages 291-314, September.
    3. Bela Balassa, 1971. "Industrial policies in Taiwan and Korea," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 106(1), pages 55-77, March.
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    Cited by:
    1. Tsangyao Chang & WentRong Liu & Michael Thompson, 2002. "The Viability of Fiscal Policy in South Korea, Taiwan, and Thailand," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0209, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

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