Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Microfoundations of the Developmental State and the Asian Economic Crisis

Contents:

Author Info

  • Jongryn Mo
Registered author(s):

    Abstract

    Contrary to the dominant view that the developmental state evolved to reduce transaction costs (such as moral hazard), it is argued that it represented, first and foremost, a policy compromise between business and government over redistribution and market competitiveness. This compromise was possible because of favorable political conditions: a long shadow of the future, a favorable payoff structure, and an unequal distribution of power (in favor of the government). The long shadow of the future, in particular, was decisive in allowing the government and business to commit to and enforce their agreement. In some East Asian countries, however, political changes shortened the time horizon of state and business elites, weakening their policy cooperation and increasing the vulnerability of the economy to a crisis. This theory is tested against the cases of nine East Asian countries, using the stability of the party system as a proxy for the length of the time horizon and thus, the ability of actors to make a credible commitment. Consistent with theory, it is found that the more fragmented or divided a country's party system (i.e. the shorter the time horizon) had become before the outbreak of the crisis, the more severe and costly the economic crisis has been in that country.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.tandfonline.com/doi/abs/10.1080/1226508042000329024
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Global Economic Review.

    Volume (Year): 34 (2005)
    Issue (Month): 1 ()
    Pages: 65-82

    as in new window
    Handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:65-82

    Contact details of provider:
    Web page: http://www.tandfonline.com/RGER20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/RGER20

    Related research

    Keywords: Microfoundations; developmental state; Asian economic crisis; principal-agent view; cooperation/bargaining view;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:glecrv:v:34:y:2005:i:1:p:65-82. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.