The political economy of industrial policy in Korea

The rapid growth and structural change of South Korea during the last 3 decades has spawned a large body of literature. With the accumulation of research, it has been revealed that the state played an important role, and the proponents of Korea as a free market have been on the defensive for the las...

Full description

Saved in:
Bibliographic Details
Published in:Cambridge journal of economics 1993-06, Vol.17 (2), p.131-157
Main Author: Chang, Ha-Joon
Format: Article
Language:English
Subjects:
Automotive industries
Bank loans
Chemicals industries
Economic competition
Economic development
Economic policy
Economic theory
Federal government
Free markets
Government regulation of business
Imports
Industrial development
Industrial machinery
Industrial policy
Intervention
Political economy
Rent seeking behavior
South Korea
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The rapid growth and structural change of South Korea during the last 3 decades has spawned a large body of literature. With the accumulation of research, it has been revealed that the state played an important role, and the proponents of Korea as a free market have been on the defensive for the last several years. The alternative literature emphasizing the role of the state in the Korean developmental experience is still in its infancy, despite some important contributions by Jones and Sakong (1980), Luedde-Neurath (1986), and most notably Amsden (1989). Some additional empirical support to this alternative literature is presented, and its theoretical basis is consolidated by using some recent developments in economic theory, such as the New Institutionalist Economics. Some mainstream interpretations of the Korean developmental process are reviewed, and how and why state intervention works in Korea is explored. The implications for a new view of the Korean developmental experience and for economic development, in general, are also provided.
ISSN:0309-166X
1464-3545
DOI:10.1093/oxfordjournals.cje.a035227