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The optimal degree of competition and dynamic efficiency in Japan and Korea

  • Amsden, Alice
  • Singh, Ajit

Abstract This paper is concerned with the neglected role of competition policy in East Asian development. Michael Porter considers Japan's development to have benefitted from intense competition among firms. By contrast, Caves and Uekusa criticize MITI's role in creating recession cartels and entry barriers, which are thought to have resulted in allocative inefficiency. This paper argues that competition policy in both Japan and Korea was oriented towards creating dynamic efficiency (the highest long term productivity growth rate). It did so by measures, operating at both the industry and firm level, which sometimes restricted competition and sometimes encouraged it.

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File URL: http://mpra.ub.uni-muenchen.de/54982/1/MPRA_paper_54982.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 54982.

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Date of creation: 12 Dec 1993
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Publication status: Published in European Economic Review 3/4.38(1994): pp. 940-951
Handle: RePEc:pra:mprapa:54982
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Web page: http://mpra.ub.uni-muenchen.de

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  1. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-33, September.
  2. repec:cup:cbooks:9780521306195 is not listed on IDEAS
  3. Singh, Ajit, 1989. "Third World Competition and De-industrialisation in Advanced Countries," Cambridge Journal of Economics, Oxford University Press, vol. 13(1), pages 103-20, March.
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