Chapter 7 ECON 5430-001 Li minqi Group members: Zeng Qi Zou jianlang Chapter 7 Japan South Korea
Taiwan Singapore Hong Kong South-east Asia China Outline The East Asian State and Production
Picking the Winners Foreign Direct Investment Policies East Asian Companies
Domestic Political Economy of Production Conclusion Picking the Winners
Japan: is the first East Asian nation to adopt industrial policy and set a successful example for others South Korea: take industrial policy to another level (early 1960s)
Taiwan: encouraged industrial upgrading to heavy industries Singaporean Picking the Winners
Hong Kong: limited intervention in the economy while adopting measures to keep production cost low. Malaysian: emphasized manufacturing
Thai: not engaged in industrial policy as actively as Northeast Asian countries Chinese: in 1950s-----promoted heavy industrialization
Foreign Direct Investment Policies Inward investment Japan & South Korea------largely discouraged FDI Other East Asian economies welcome foreign investment China enacted a joint venture law in 1979 provided major incentive for foreign investors since the 1980 Vietnamese: actively seeks FDI-----following the Chinese
and ASEN models East Asian Companies East Asian companies are the engines of East Asian economic growth and economic transformation (become more prominent globally) Japan-----led the way
Brand name: Sony, Toshiba, Toyota, Honda, Nissan East Asian Companies South Korean: followed Japans example Brand name: Samsung, LG, SK
Large chaebol have powered South Korean economic growth East Asian Companies Rank Domestic Political Economy of Production Why production has been so important for East
Asian? Strong economic base for national power The employment that manufacturing provides Conclusion
Two extreme The South Korean state has been the most detail- oriented interventionist (learning from Japan and moving to another level) The Hong Kong-----basically adopted a free-market approach Conclusion
East Asian advantages: production, proximity and skill Thanks!
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