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Industry Policy in Taiwan and Korea in the 1980s
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The growth in industrial competitiveness and interdependence has led to an increased interest in the role of industrial policy in achieving economic growth objectives. Heather Smith re-ignites the contentious debate of the role of the state using East Asian economic development in general with particular emphasis on Taiwan and Korea. Using quantitative techniques, she analyzes the view that industry policy interventions were a necessary factor explaining Taiwan's economic performance in the 1980s. Lessons for other countries attempting to upgrade their industrial structure are drawn from the comparative industrialization experience of Taiwan and Korea, along with: a comprehensive discussion of strategic industry policy with an application to East Asia; discussion of the impact of the 1997-8 financial crisis in Korea; and a critique of the structuralist/revisionist literature in the light of the financial crisis.
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