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The Role of Government in East Asian Economic Development: Comparative Institutional Analysis

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Overview

The role of government in East Asian economic development has been a contentious issue. This collection of essays suggests a breakthrough, third view: the market-enhancing view. Instead of viewing government and the market as mutually exclusive substitutes, it examines the capacity of government policy to facilitate or complement private sector coordination. The book starts from the premiss that private sector institutions have important comparative advantages over government, in particular in their ability to process information available on site. At the same time, it recognizes that the capabilities of the private sector are more limited in developing economies. The market-enhancing view thus stresses the mechanisms whereby government policy is directed at improving the ability of the private sector to solve co-ordination problems and overcome other market imperfections. In presenting the market-enhancing view, the book recognizes the wide diversity of the roles of government across various East Asian economies - including Japan, Korea, Hong Kong, Malaysia, and China - and its path-dependent and developmental stage nature. This volume is the outcome of a two-year research project co-sponsored by the Center for Economic Policy Research at Stanford University and the Economic Development Institute of the World Bank.
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Product Details

  • ISBN-13: 9780198292135
  • Publisher: Oxford University Press
  • Publication date: 3/28/1997
  • Pages: 448
  • Product dimensions: 6.37 (w) x 9.50 (h) x 1.14 (d)

Meet the Author

Stanford University

World Bank

University of Tokyo

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Table of Contents

Preface
Contributors
Introduction
1 Beyond the East Asian Miracle: Introducing the Market-Enhancing View 1
2 The Role of Government in Economic Development: Some Observations from the Experience of China, Hong Kong, and Taiwan 41
3 The Government-Firm Relationship in Postwar Japanese Economic Recovery: Resolving the Coordination Failure by Coordination in Industrial Rationalization 74
4 The Role of Government in Acquiring Technological Capability: The Case of the Petrochemical Industry in East Asia 101
5 Economic Development as Coordination Problems 134
6 Financial Restraint: Toward a New Paradigm 163
7 Government Intervention, Rent Distribution, and Economic Development in Korea 208
8 Unintended Fit: Organizational Evolution and Government Design of Institutions in Japan 233
9 Institutions, State Activism, and Economic Development: A Comparison of State-Owned and Township-Village Enterprises in China 254
10 Sectoral Resource Transfer, Conflict, and Macrostability in Economic Development: A Comparative Analysis 279
11 The Political Economy of Growth in East Asia: A Perspective on the State, Market, and Ideology 323
12 Rents and Development in Multiethnic Malaysia 342
13 Toward a Comparative Institutional Analysis of the Government-Business Relationship 373
Index 407
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