Edward Elgar Publishing Industry Policy in Taiwan and Korea in the 1980s: Winning with the Market

The growth in global competitiveness and interdependence has led to an increased interest in the role of industrial policy in achieving economic growth objectives. Heather Smith reignites the contentious debate of the role of the state using East Asian economic development in general with particular emphasis on Taiwan and Korea. Using quantitive techniques, the author analyses 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 industrialisation experience of Taiwan and Korea, along with: • a comprehensive discussion of strategic industry policy with an application to East Asia.• discussion on the impact of the 1997-1998 financial crisis in Korea• a critique of the structuralist/revisionist literature in the light of the financial crisis. This highly topical study constitutes essential reading for governmental and non-governmental policymakers, business leaders and academics alike. Review 'This is a very good piece of research. As a book, it is important because it focuses on important conceptual and empirical issues, namely the role of government and industrial policy in promoting rapid economic growth; and particularly the case of Taiwan as an exemplar of rapid industrial development. The author convincingly refutes the view that sector-specific industrial policy was an important source of Taiwan's rapid industrial growth in the 1980s.' About the Author Heather Smith, Fellow, Division of Economics, Research School of Pacific and Asian Studies and Asia Pacific School of Economics and Management, Australian National University, Australia