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East Asian Financial and Economic Development

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  • Randall Morck
  • Bernard Yeung
Abstract
Japan, an isolated, backward country in the 1860s, industrialized rapidly to become a major industrial power by the 1930s. South Korea, among the world’s poorest countries in the 1960s,joined the ranks of First World economies in little over a single generation. China now seems poised to follow a similar trajectory. All three cases highlight the importance of marginalized traditional elites, intensive early investment in education, a degree of economic openness, free markets, equity financing, early-stage coordination of firms in diverse industries via arrangements such as business groups, and political institutions capable of curbing the power of families grown wealthy in early-stage rapid development to make way for prosperity sustained by efficient resource allocation to high-productivity firms.

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  • Randall Morck & Bernard Yeung, 2017. "East Asian Financial and Economic Development," Working Papers id:12112, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12112
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    Cited by:

    1. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2022. "Trajectories to high income: Comparing the growth dynamics in China, South Korea, and Japan with cointegrated VAR models," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 492-511.
    2. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2020. "Trajectories to high income: comparing the growth dynamics in China, Korea, and Japan with cointegrated VAR models," CEAMeS Discussion Paper Series 16/2020, University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS).

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    More about this item

    Keywords

    Asian development; financial development; economic development; industrial power; world’s poorest countries; marginalized traditional elites; intensive early investment in education; a degree of economic openness; free markets; equity financing; political institutions; high-productivity firms.;
    All these keywords.

    JEL classification:

    • G0 - Financial Economics - - General
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems

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