Comparison of South Korea Taiwan韩国与台湾的比较.pptVIP

Comparison of South Korea Taiwan NIE development model reconsidered Comparison Population South Korea:49 million Taiwan: 23 million land area South Korea:96,920 km2 Taiwan: 32,260 km2 South Korea and Taiwan Purchasing power parity GDP of 2012 South Korea: US$1.64 trillion (12th) Taiwan: US$0.92 trillion (20th) GDP growth rate 2010-2012 South Korea: 6.3%, 3.6%, 2% Taiwan: 10.8%, 4.1%, 1.3% NIE development models Singapore, Hong Kong, Taiwan, and South Korea export-oriented industrialization state guidance state involvement in economic development high investment in human capital formation NIE development model dead? South Korea in 1997 negative growth for the 1st time in 2 decades unemployment rate rose from 3% to 7% per capita GNP almost shrank by half Taiwan in 1997 economic growth slowed down still robust Is the NIE development model in crisis? South Korea and Taiwan development becomes state’s priority commitment to private property market government’s strategic industrial policy state agencies formulate and implement strategic policies (e.g. Japan’s MITI) sound macroeconomic management bureaucratic autonomy from interest groups South Korea and Taiwan Military strongman rule from 1960s to 1970s South Korea Park Chung Hee (1962-79) Taiwan Chiang Kai-Shek (1945-75) Park Chung Hee Experience with Japan’s wartime economic management in Northeast China Economic Planning Board Ministry of Trade and Industry Ministry of Finance import substitution = export orientation normalization with Japan Vietnam War Financial sector Government owned and controlled all 5 commercial banks including the central bank (Bank of Korea) all 6 special banks 2 of the 3 non-bank financial institutions Financial sector Foreign Capital Inducement Law control private sector’s access to foreign capital business activities were directed by the state Growth-first goal Low interest rate to induce firms to grow favored large firms firms compliant with state policies and plans excessive demand for