3-24 - Mean 82 Med 83-84 STD 12 Min 57 Max 100 Singapore...

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Mean 82, Med 83-84 STD 12 Min 57 Max 100 Singapore and the Rest of SE Asia HK and Singapore are city-states, so they don’t have rural areas Both former British colonies, serve as entrepot for international trade Thus have better financial sectors than Japan, Taiwan Singapore differs from HK in that it tends to be more interventionist – “nanny state” Independent in 1959 1963, joined with Malaysia in federation (Singapore majority Chinese, Malaysia mostly Malay) 1965 expelled from federation Race riots in Singapore These experiences encouraged elite to err on side of control Race remains underlying issue in Singapore In 60s, tried to do ISI, quickly failed Shifted gears due partly to demonstration effect – Taiwan and South Korea Taiwan does reform in 50s to early 60s Korea copies Taiwan in 1963 Singapore copies Taiwan, Korea 1970s, scaled back incentives 1980s, in effect free trade (limited number of tariffs, but very low and few) Singapore de facto free trade, HK de jure free trade Role of MNCs in Singapore’s development After failure of ISI, Singapore encouraged foreign multinational corporations to come to Singapore 85% of manufacturing in Singapore was by MNCs This was way for Singapore to link its potential to world demand In 60s and 70s, this was very against the current MNCs were seen as a necessary evil at the time First policy shift was to go from ISI to export orientation, late 60s, early 70s Second policy shift was promotion of “second industrial revolution” Many MNCs involved in consumer electronics Singapore not satisfied with that quality of jobs, forced upgrading to have higher human capital content, etc. Government subsidized education, preferred sectors (capital channeling), increased wages Forcing up the wage rate would force out the lower industries Problem was, priced themselves out of world market – exports declined
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When this happened, they reversed and returned to old policies (Singapore developed petrochemical sector due to nearness to Malaysia, Indonesia, Middle East
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This note was uploaded on 07/12/2008 for the course ECON 324 taught by Professor Noland during the Spring '08 term at Yale.

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3-24 - Mean 82 Med 83-84 STD 12 Min 57 Max 100 Singapore...

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