Crisis management and the varieties of capitalism: Fiscal stimulus packages and the transformation of East Asian state-led capitalism since 2008
This paper contributes to the understanding of the diversity of capitalism by combining approaches from comparative political economy and development studies, notably developmental state theory. We show that different types of capitalism react differently to global shocks and offer some support for the classic varieties of capitalism argument that external pressure leads to the reinforcement of historically evolved institutions. Moreover, we make several departures from established theories on the variety of capitalism, namely, their Eurocentric bias, their under-theorization of the role of the state, and the methodological conservative bias of institutionalist approaches. At the empirical level, this paper studies the reaction of East Asian countries (China, Japan and Korea) to the global financial crisis with a focus on fiscal stimulus packages that were implemented from 2008 to 2010. Unlike in the West, where a (short-lived) revival of Keynesianism could be observed, East Asian governments implemented large fiscal stimulus packages with strong elements of industrial policies. This paper argues that the size and character of fiscal stimulus packages can be explained by a path dependency of developmental state capitalism. In addition, the paper examines the substantial changes in the transformation from an old-style developmental state to a neo-developmental state.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: ++49 - 30 - 25491 - 0
Fax: ++49 - 30 - 25491 - 684
Web page: http://www.wzb.eu/
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.:
- Hidemi Kimura & Yasuyuki Todo, 2009.
"Is Foreign Aid a Vanguard of Foreign Direct Investment? A Gravity-Equation Approach,"
Development Economics Working Papers
22881, East Asian Bureau of Economic Research.
- Kimura, Hidemi & Todo, Yasuyuki, 2010. "Is Foreign Aid a Vanguard of Foreign Direct Investment? A Gravity-Equation Approach," World Development, Elsevier, vol. 38(4), pages 482-497, April.
- Hidemi Kimura & Yasuyuki Todo, 2009. "Is Foreign Aid a Vanguard of Foreign Direct Investment? A Gravity-Equation Approach," Asia Pacific Economic Papers 380, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
- Rodrik, Dani, 2004.
"Industrial Policy for the Twenty-First Century,"
CEPR Discussion Papers
4767, C.E.P.R. Discussion Papers.
- David Coates, 2012. "Dire consequences: the conservative recapture of America's political narrative?," Cambridge Journal of Economics, Oxford University Press, vol. 36(1), pages 145-153.
- Boyer, Robert, 2005. "How and Why Capitalisms Differ," MPIfG Discussion Paper 05/4, Max Planck Institute for the Study of Societies.
- Amsden, Alice H, 1991. "Diffusion of Development: The Late-Industrializing Model and Greater East Asia," American Economic Review, American Economic Association, vol. 81(2), pages 282-86, May.
- Jenn-Hwan Wang, 2007. "From technological catch-up to innovation-based economic growth: South Korea and Taiwan compared," Journal of Development Studies, Taylor & Francis Journals, vol. 43(6), pages 1084-1104.
- Christine Wong, 2011. "The Fiscal Stimulus Programme and Public Governance Issues in China," OECD Journal on Budgeting, OECD Publishing, vol. 11(3), pages 1-22.
- Amable, Bruno, 2003. "The Diversity of Modern Capitalism," OUP Catalogue, Oxford University Press, number 9780199261147, March.
- Robinson, Joan, 1972. "The Second Crisis of Economic Theory," American Economic Review, American Economic Association, vol. 62(2), pages 1-10, May.
- Stiglitz, Joseph E, 1996. "Some Lessons from the East Asian Miracle," World Bank Research Observer, World Bank Group, vol. 11(2), pages 151-77, August.
- Robert H. Wade, 2012. "Return of industrial policy?," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(2), pages 223-239, November.
- Amable, Bruno & Azizi, Karim, 2011. "Varieties of capitalism and varieties of macroeconomic policy. Are some economies more procyclical than others?," MPIfG Discussion Paper 11/6, Max Planck Institute for the Study of Societies.
- Raphael Kaplinsky & Mike Morris, 2009. "Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons," The European Journal of Development Research, Palgrave Macmillan, vol. 21(4), pages 551-569, September.
- Jenn hwan Wang & Tsung-Yuan Chen & Ching-Jung Tsai, 2012. "In Search of an Innovative State: The Development of the Biopharmaceutical Industry in Taiwan, South Korea and China," Development and Change, International Institute of Social Studies, vol. 43(2), pages 481-503, 03.
- Antonio Fatás & Ilian Mihov, 2009. "Why Fiscal Stimulus is Likely to Work," International Finance, Wiley Blackwell, vol. 12(1), pages 57-73, 05.
When requesting a correction, please mention this item's handle: RePEc:zbw:wzbmeg:spiii2013501. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.