IDEAS home Printed from https://ideas.repec.org/a/mes/postke/v24y2001i2p253-275.html
   My bibliography  Save this article

Overcapacity and the East Asian Crisis

Author

Listed:
  • Korkut A. Erturk

Abstract

The historic success of East Asian economies prior to the 1997 financial crisis depended on their ability to escape the trap of deteriorating terms through a regional pattern of development known as the flying geese model. However, this pattern of development has come under increasing strain in the second half of 1980s. As competitive pressures intensified, producers throughout the region early-exited their niches of production in a futile attempt to safeguard their competitive position. The investment boom this has caused in the early 1990s led to the creation overcapacity throughout the region and the reemergence of the fallacy of composition inherent in a generalized system of export led growth, paving the way for the financial crisis of 1997.

Suggested Citation

  • Korkut A. Erturk, 2001. "Overcapacity and the East Asian Crisis," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 24(2), pages 253-275, December.
    • Handle: RePEc:mes:postke:v:24:y:2001:i:2:p:253-275
    DOI: 10.1080/01603477.2001.11490326
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01603477.2001.11490326
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01603477.2001.11490326?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guillermo Calvo & Mervyn King (ed.), 1998. "The Debt Burden and its Consequences for Monetary Policy," International Economic Association Series, Palgrave Macmillan, number 978-1-349-26077-5, December.
    2. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jane D'Arista & Korkut Erturk, 2010. "The Monetary Explanation of the Crisis and the Ongoing Threat to the Global Economy," Challenge, Taylor & Francis Journals, vol. 53(2), pages 5-29.
    2. Jianjia Wang & Chenyue Lin & Yilei Wang, 2019. "Thermodynamic Entropy in Quantum Statistics for Stock Market Networks," Complexity, Hindawi, vol. 2019, pages 1-11, April.
    3. Stephanie Seguino & Caren A. Grown, 2006. "Feminist-Kaleckian Macroeconomic Policy for Developing Countries," Economics Working Paper Archive wp_446, Levy Economics Institute.
    4. Zhang, Yanfang & Zhang, Ming & Liu, Yue & Nie, Rui, 2017. "Enterprise investment, local government intervention and coal overcapacity: The case of China," Energy Policy, Elsevier, vol. 101(C), pages 162-169.
    5. Youze Lang & Qiuyi Yang, 2019. "Does Public Infrastructure Breed Consumption Downgrade and Overcapacity in China? A DSGE Approach on Macroeconomic Effects," Sustainability, MDPI, vol. 11(3), pages 1-23, February.
    6. Gairuzazmi Ghani, 2006. "Export Promotion Policies and the Crowding‐out Effect in Developing Countries," Asian Economic Journal, East Asian Economic Association, vol. 20(3), pages 319-331, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Waterbury, John, 1999. "The Long Gestation and Brief Triumph of Import-Substituting Industrialization," World Development, Elsevier, vol. 27(2), pages 323-341, February.
    2. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.
    3. Justin Yifu Lin, 2017. "Industrial policies for avoiding the middle-income trap: a new structural economics perspective," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 15(1), pages 5-18, January.
    4. Blanco, Luisa & Grier, Robin, 2012. "Natural resource dependence and the accumulation of physical and human capital in Latin America," Resources Policy, Elsevier, vol. 37(3), pages 281-295.
    5. David Colman, 2010. "Agriculture's terms of trade: issues and implications," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 1-15, November.
    6. Justin Yifu Lin & David Rosenblatt, 2012. "Shifting patterns of economic growth and rethinking development," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(3), pages 171-194, September.
    7. Mohsen Bahmani-Oskooee & Tsangyao Chang & Zahra (Mila) Elmi & Omid Ranjbar, 2018. "Re-testing Prebisch–Singer hypothesis: new evidence using Fourier quantile unit root test," Applied Economics, Taylor & Francis Journals, vol. 50(4), pages 441-454, January.
    8. L. Lambertini & R. Rovelli, 2003. "Monetary and fiscal policy coordination and macroeconomic stabilization. A theoretical analysis," Working Papers 464, Dipartimento Scienze Economiche, Universita' di Bologna.
    9. Olle Östensson & Anton Löf, 2017. "Downstream activities: The possibilities and the realities," WIDER Working Paper Series 113, World Institute for Development Economic Research (UNU-WIDER).
    10. Teixidó-Figueras, J. & Duro, J.A., 2014. "Spatial Polarization of the Ecological Footprint Distribution," Ecological Economics, Elsevier, vol. 104(C), pages 93-106.
    11. Jiménez, Juan Pablo & Tromben, Varinia, 2006. "Fiscal policy and the commodities boom: the impact of higher prices for non-renewables in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    12. Andre Nassif & Carmem Aparecida Feijo & Eliane Araújo, 2016. "Structural change, catching up and falling behind in the BRICS: A comparative analysis based on trade pattern and Thirlwall’s Law," PSL Quarterly Review, Economia civile, vol. 69(279), pages 373-421.
    13. Giovanni Dosi & Andrea Roventini & Emmanuele Russo, 2020. "Public Policies And The Art Of Catching Up," Working Papers hal-03242369, HAL.
    14. Ibrahim Alshomaly & Walid Shawaqfeh, 2020. "The Effect of Export Diversification on the Economic Growth of West-Asian Arab Countries," Journal of Social Sciences (COES&RJ-JSS), , vol. 9(2), pages 429-450, April.
    15. Ricúpero, Rubens, 2004. "The renewed currency of Raúl Prebisch," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    16. Nazlioglu, Saban, 2014. "Trends in international commodity prices: Panel unit root analysis," The North American Journal of Economics and Finance, Elsevier, vol. 29(C), pages 441-451.
    17. Boris Petkov, 2018. "Natural Resource Abundance: Is it a Blessing or is it a Curse," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 25-56, September.
    18. Wells, J., 1988. "Latin America at the cross-roads," ILO Working Papers 992616543402676, International Labour Organization.
    19. Matthias Doepke & Martin Schneider, 2017. "Money as a Unit of Account," Econometrica, Econometric Society, vol. 85, pages 1537-1574, September.
    20. Olivier Blanchard, 2000. "What Do We Know about Macroeconomics that Fisher and Wicksell Did Not?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1375-1409.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:postke:v:24:y:2001:i:2:p:253-275. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MPKE20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.