This paper examines the causes of Taiwan's exceptional economic performance, focusing on the influence of organizational and policy choices and how Taiwan's example differs from those of more typical less-developed countries. After briefly citing cultural factors as proposed by his late colleague John Fei, Ranis proceeds to explore the issues of organic nationalism, natural resource endowment, access to foreign capital and other political factors that have produced such economic success. The author demonstrates how Taiwan's unique combination of strong organic nationalism, meager natural resources and limited access to foreign capital helped curb the Extended Dutch Disease phenomenon endemic in LDCs. In addition, the government's non-oscillatory, relatively laissez-faire fiscal and monetary policies, encouragement of technological innovation, plus generous educational, R&D and infrastructural expenditures have contributed to low rates of inflation and high rates of GDP growth. The paper finally suggests a positive correlation between democracy and economic development.
|Date of creation:||Dec 1997|
|Contact details of provider:|| Postal: PO Box 8269, New Haven CT 06520-8269|
Phone: (203) 432-3610
Fax: (203) 432-3898
Web page: http://www.econ.yale.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bhagwati, Jagdish N & Krueger, Anne O, 1973. "Exchange Control, Liberalization, and Economic Development," American Economic Review, American Economic Association, vol. 63(2), pages 419-427, May.
- Alwyn Young, 1992. "A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore," NBER Chapters,in: NBER Macroeconomics Annual 1992, Volume 7, pages 13-64 National Bureau of Economic Research, Inc.
- Sachs, J-D & Warner, A-M, 1995.
"Natural Resource Abundance and Economic Growth,"
517a, Harvard - Institute for International Development.
- Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
- Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:egc:wpaper:786. 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: (Louise Danishevsky)
If references are entirely missing, you can add them using this form.