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Financing Industrial Development in Korea and Implications for Africa

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  • Lee, Keun

Abstract

This chapter examines the implications of Korea’s industrial policy and financing for African economies that are trying to build their industrial bases. It considers industrial policy as essentially building the capabilities of private firms to sustain long-term economic growth and looks at the role of the government or industrial policy in this process of capability building. The chapter first provides an overview of the financial systems and industrial policy in Korea, focusing on the nature of financial control by the government and the roles and evolution of key development banks such as the Korea Development Bank. It then discusses three episodes of industrial policy and financing in these cases involving POSCO, targeted development of bottleneck technologies for small and medium-sized enterprises (SMEs), and leapfrogging into digital TV since the mid-1990s. Finally, it assesses the significance of the Korean experience for Africa, especially with regards to export manufacturing and resource-based development.

Suggested Citation

  • Lee, Keun, 2017. "Financing Industrial Development in Korea and Implications for Africa," MPRA Paper 111036, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111036
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    References listed on IDEAS

    as
    1. Lee, Keun & Lim, Chaisung, 2001. "Technological regimes, catching-up and leapfrogging: findings from the Korean industries," Research Policy, Elsevier, vol. 30(3), pages 459-483, March.
    2. Hochul Shin & Keun Lee, 2012. "Asymmetric trade protection leading not to productivity but to export share change," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(4), pages 745-785, October.
    3. Lee, Keun & Kim, Byung-Yeon, 2009. "Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited," World Development, Elsevier, vol. 37(3), pages 533-549, March.
    4. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, March.
    5. Lee, Keun & Lim, Chaisung & Song, W, 2005. "Emerging Digital Technology as a Window of Opportunity and Technological Leapfrogging: Catch-up in Digital TV by the Korean Firms," MPRA Paper 109777, University Library of Munich, Germany.
    6. Park, Yung Chul, 1990. "Development Lessons from Asia: The Role of Government in South Korea and Taiwan," American Economic Review, American Economic Association, vol. 80(2), pages 118-121, May.
    7. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
    8. Keun Lee & John A. Mathews, 2010. "From Washington Consensus to BeST Consensus for world development," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(1), pages 86-103, May.
    9. Jesus Felipe (ed.), 2015. "Development and Modern Industrial Policy in Practice," Books, Edward Elgar Publishing, number 16411.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    industrial policy; industrial financing; Africa; financial systems; development banks; POSCO; small and medium-sized enterprises; digital TV; Korea; export manufacturing;
    All these keywords.

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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