Transnational Economic Linkages, the State, and Dependent Development in South Korea, 1966—1988: A Time-Series Analysis

This article uses time-series analysis to examine development patterns in South Korea, a country that has realized dramatic economic growth over the last several decades. We show that (1) arguments associated with classical dependency and dependent development theory must be modified substantially w...

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Bibliographic Details
Published in:Social forces 1993-12, Vol.72 (2), p.315-345
Main Authors: Bradshaw, York W., Kim, Young-Jeong, London, Bruce
Format: Article
Language:English
Subjects:
Analysis
Capital investments
Capital outflows
Central government
Deficit spending
Dependency Theory
Development
Development sociology
Economic aspects
Economic dependence
Economic Development
Economic Growth
Factors
Financial investments
Foreign investments
Government
Gross domestic product
International development
International economic relations
International Relations
International trade
Korea, South
Manufacturing output
Social Development
Sociology
Sociology of economy and development
South Korea
State Role
Time series
Trade
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Summary:This article uses time-series analysis to examine development patterns in South Korea, a country that has realized dramatic economic growth over the last several decades. We show that (1) arguments associated with classical dependency and dependent development theory must be modified substantially when applied to Korea; (2) the Korean state has been an important actor in the country's economic success, closely regulating direct foreign investment but strongly encouraging foreign trade; and (3) foreign trade and foreign loans have facilitated economic growth throughout the Korean economy, whereas the capital outflow associated with direct foreign investment continues to impede expansion. Overall, we conclude that Korea has experienced a form of “dependent development” that relies heavily on international trade (especially exports), a strong national state, and local business. This pattern is in contrast to Latin American dependent development, which places a heavy emphasis on direct foreign investment.
ISSN:0037-7732
1534-7605
DOI:10.1093/sf/72.2.315