PAPER apres correction julien

PAPER apres correction julien - P aper- ECON 411 Paul...

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Paper- ECON 411 Paul PRADIER 260306538 A comparison of the two successful stories- South Korea and Taiwan- Development patterns and mechanisms from the time of independence to 1997 East and Southeast Asia experienced remarkably high and stable economic growth rates from the 1960s until the 1997 July financial crisis. The extremely rare type of high-level, sustained postwar economic growth experienced by the Republic of Korea (hereafter Korea) and Taiwan has drawn the attention of many scholars interested in economic development 1 . Table 1 1 in the appendix provides us with the evolution of some of the key economic performance indicators for the two economies between 1961 and 1990. We can clearly distinguish similarities in terms of the importance of exports as a percentage of the GNP, and also their common dependency for trade on the US and Japan. The most striking result is certainly the data showing the average growth rate of per capita GNP, and we distinguish the exact same number when comparing Korea and Taiwan: 7.1
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These two countries are of great interest for those studying economic development as they have a lot of common in terms of natural endowment and historical background. Additionally both economies’ development pattern can be characterized by an export-led industrialization highly reliant on the Japanese and U.S. markets. Many researchers on the topics have attempted to analyze the two economies as examples of identical economic phenomena. However, having a common development pattern does not automatically guarantee the existence of a common mechanism by which development was achieved 1 . In order to support this argument, we will depict the differences in the structure of business groups in South Korea and Taiwan. Therefore, we will demonstrate that we cannot build on a single development model based on the Korean and Taiwanese experiences solely because both countries achieved high level of economic growth throughout the second part of the XX th century. Despite the numerous resemblances that we will analyze in the first part of the paper, we will show that their respective development was based on different mechanisms pertaining to the structure and the organization of their businesses. I) Political and Economic Similarities of Taiwan and South Korea a) Recent historical background and autocratic power based and their common attachment to Japanese colonialism Taiwan and Korea have a lot in common in terms of historical background. South Korea came into being in 1948, following the partition of Korea. Being previously a Japanese colony, Korea was tightly integrated into the imperial economy which introduced many modern economic and social institutions, and invested heavily in infrastructure, including schools, railroads and utilities 2 . Japanese colonial government did the same for Taiwan as part of its imperial
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PAPER apres correction julien - P aper- ECON 411 Paul...

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