Asia's Next Giant

Abstract

South Korea has been quietly growing into a major economic force that is even challenging some Japanese industries. This book examines South Korean economic growth as an example of “late industrialization,” a process in which a nation's industries learn from earlier innovator nations rather than innovate themselves. Discussing state intervention, shop‐floor management, and big business groups, the reasons are explored for South Korea's phenomenal growth, paying special attention to the principle of reciprocity in which the government imposes strict performance standards on those industries and companies that it aids. It is shown thereby how South Korea, Japan, and Taiwan were able to grow faster than other emerging nations such as Brazil, Turkey, India, and Mexico. The book is arranged in three main parts: Part 1 surveys South Korean history and the origins of state policies that led to the successes of its late industrialization; Part 2 examines the ways in which the South Korean management and workforce were transformed into major factors in the growth of its industry; and Part 3 discusses the creation of comparative advantage in several industries and the reasons why only one kept pace with expansion while the others drove it.

National technology policy and computer production in Asia‐pacific countries

“…According to this view, market forces should determine where and how technology is produced and used, and government should limit its role to provision of public goods and mitigating market failures (although there is significant variation in the definition of what fits into these categories). Other analysts (Amsden, 1989;Wade, 1990;Ernst & O'Connor, 1992) point out that the private sector tends to chronically under invest in high-cost, high-risk technological innovations that have relatively long payback periods. Under such circumstances, it is argued that government must act to support technological development, either through its own research activities, or through subsidies to the private sector.…”

Comparative Study Of The Role Of Institutions In Shaping Inventive Activity In Mid-Range Emerging Economies

“…The "developmental state" literature explored the role of the state in industrial development, especially in the countries that industrialized late like, for example, Japan or South Korea (Johnson 1982;Amsden 1985Amsden , 1989Cumings 1999;WooCumings 1999). Approaches to measuring institutional quality vary.…”

Foreign Capital Investment into Developing Countries: Some Economic Policy Issues

“…Despite the governments' pro-liberalisation policies towards foreign investors in the mid-1980s it reached only 9.7%. (Amsden, 1989:92) The country's attitude towards foreign investors in the 1960s was designed on the basis of a very sophisticated notion of costs and benefits, with invitations to MNEs and foreign investors only approved after potential benefits were recognised. The government's 1981 White Papers on Foreign Investment lists that such investments should positively contribute towards industrial upgrading, technology transfer, job creation and balance of payments.…”

“…The government's 1981 White Papers on Foreign Investment lists that such investments should positively contribute towards industrial upgrading, technology transfer, job creation and balance of payments. (Amsden, 1989) There were policies that restricted areas where MNEs could enter. In the early 1980s, nearly 50% of all industries and 20% of manufacturing industries were still 'off-limits' to foreign investors.…”

“…(Amsden, 1989) Remarkable growth took place in Japan starting after the ruin and destruction of the Second World War propelling Japan towards becoming the most successful exporter of manufactured goods, and later on, the largest capital exporter in the world. Japan's successful industrialisation also played a positive role in the economic expansion in South Korea, and in the late 1980s with the appreciation of the Japanese Yen, Japanese capital moved into Malaysia, Thailand, Indonesia and Philippines.…”