IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v32y2020i1d10.1057_s41287-019-00227-1.html
   My bibliography  Save this article

Challenging the East Asian Development Model: Evidence from South Korea

Author

Listed:
  • Jaekwon Cha

    (Pukyong National University)

  • O. Fiona Yap

    (The Australian National University)

Abstract

The resurgence of the East Asian development model has seen alarming trends of populist-authoritarianism as well as democratic reversals. Yet, the core argument—strong, unconstrained governments successfully motivate or compel compliance—is rarely assessed. This paper makes that systematic assessment with historical data and survey findings from South Korea, the prototypical East Asian model. Two findings are consequential: first, strong, unconstrained governments led to higher-than-normal disinvestments; this occurs notwithstanding in- or out-of-favour sectors. This means that government could not strong-arm or exploit out-of-favour producers to abide by policies that favour other sectors. Second, surveys analysed show that almost 40% have or would engage in political actions that challenged the government, despite the latter’s strength or autocracy. This means that citizens, of which labour is a large component, were also willing to disobey the government’s policies or directives. Together, the results challenge the model that strong government may successfully override preferences to push or even compel the compliance that underpins economic success.

Suggested Citation

  • Jaekwon Cha & O. Fiona Yap, 2020. "Challenging the East Asian Development Model: Evidence from South Korea," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(1), pages 220-250, January.
  • Handle: RePEc:pal:eurjdr:v:32:y:2020:i:1:d:10.1057_s41287-019-00227-1
    DOI: 10.1057/s41287-019-00227-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41287-019-00227-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41287-019-00227-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chandra, Siddharth & Rudra, Nita, 2015. "Reassessing the Links between Regime Type and Economic Performance: Why Some Authoritarian Regimes Show Stable Growth and Others Do Not," British Journal of Political Science, Cambridge University Press, vol. 45(2), pages 253-285, April.
    2. Boix, Carles & Svolik, Milan, 2009. "The Foundations of Limited Authoritarian Government: Institutions and Power-Sharing in Dictatorships," Papers 10-21-2009b, Princeton University, Research Program in Political Economy.
    3. Witold J. Henisz, 2002. "The institutional environment for infrastructure investment," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(2), pages 355-389.
    4. Abiad, Abdul & Oomes, Nienke & Ueda, Kenichi, 2008. "The quality effect: Does financial liberalization improve the allocation of capital?," Journal of Development Economics, Elsevier, vol. 87(2), pages 270-282, October.
    5. Joseph E. Stiglitz & Shahid Yusuf, 2001. "Rethinking the East Asian Miracle," World Bank Publications - Books, The World Bank Group, number 13969.
    6. John Mcmillan & Pablo Zoido, 2004. "How to Subvert Democracy: Montesinos in Peru," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 69-92, Fall.
    7. Weingast, Barry R., 1997. "The Political Foundations of Democracy and the Rule of the Law," American Political Science Review, Cambridge University Press, vol. 91(2), pages 245-263, June.
    8. Jong H. Park, 2002. "The East Asian Model of Economic Development and Developing Countries," Journal of Developing Societies, , vol. 18(4), pages 330-353, December.
    9. O. Fiona Yap, 2005. "Bargaining in Less-Democratic Newly Industrialized Countries," Journal of Theoretical Politics, , vol. 17(3), pages 283-309, July.
    10. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
    11. Alain De Janvry, 2010. "Agriculture for development: new paradigm and options for success," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 17-36, November.
    12. Gilbert, R. Alton & Wilson, Paul W., 1998. "Effects of Deregulation on the Productivity of Korean Banks," Journal of Economics and Business, Elsevier, vol. 50(2), pages 133-155, March.
    13. Stiglitz, Joseph E & Uy, Marilou, 1996. "Financial Markets, Public Policy, and the East Asian Miracle," The World Bank Research Observer, World Bank, vol. 11(2), pages 249-276, August.
    14. Prakash Kumar Shrestha, 2013. "Economic development in South and East Asia: empirical examination of East Asian Development Model," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 20(2), pages 1-28, December.
    15. Jene K. Kwon & Jung Mo Kang, 2011. "The East Asian model of economic development," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 25(2), pages 116-130, November.
    16. W. J. Henisz, 2000. "The Institutional Environment for Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 1-31, March.
    17. Choi, Seung-Whan & James, Patrick, 2007. "Media Openness, Democracy and Militarized Interstate Disputes," British Journal of Political Science, Cambridge University Press, vol. 37(1), pages 23-46, January.
    18. Thorbecke, Erik & Morrisson, Christian, 1989. "Institutions, policies and agricultural performance: A comparative analysis," World Development, Elsevier, vol. 17(9), pages 1485-1498, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. O. Fiona Yap, 2021. "Local politics for democratic quality and depth: Lessons from South Korea," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 8(1), pages 5-14, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haggard, Stephan & Tiede, Lydia, 2011. "The Rule of Law and Economic Growth: Where are We?," World Development, Elsevier, vol. 39(5), pages 673-685, May.
    2. Hayo, Bernd & Voigt, Stefan, 2023. "Judicial independence: Why does de facto diverge from de jure?," European Journal of Political Economy, Elsevier, vol. 79(C).
    3. Michael Touchton, 2023. "Government Checks and Balances, Policy Credibility, and Foreign Direct Investment: A Cross-National Investigation," Economies, MDPI, vol. 11(10), pages 1-15, October.
    4. Benischke, Mirko H. & Guldiken, Orhun & Doh, Jonathan P. & Martin, Geoffrey & Zhang, Yanze, 2022. "Towards a behavioral theory of MNC response to political risk and uncertainty: The role of CEO wealth at risk," Journal of World Business, Elsevier, vol. 57(1).
    5. Michael K Miller, 2013. "Electoral authoritarianism and democracy: A formal model of regime transitions," Journal of Theoretical Politics, , vol. 25(2), pages 153-181, April.
    6. Gnekpe, Christian & Jimenez, Alfredo, 2023. "Smoke signal: When firms' patent strategy and local patent protection system affect equity stakes in cross-border acquisitions," Journal of International Management, Elsevier, vol. 29(6).
    7. O. Fiona Yap, 2020. "A New Normal or Business-as-Usual? Lessons for COVID-19 from Financial Crises in East and Southeast Asia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(5), pages 1504-1534, December.
    8. Seung-Whan Choi, 2010. "Legislative Constraints: A Path to Peace?," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(3), pages 438-470, June.
    9. Patrice Rélouendé Zidouemba & Françoise Gerard, 2018. "Does Agricultural Productivity Actually Matter for Food Security in a Landlocked Sub†Saharan African Country? The Case of Burkina Faso," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(1), pages 103-142, March.
    10. Fabian Gunzinger & Jan-Egbert Sturm, 2016. "It's Politics, Stupid! Political Constraints Determined Governments' Reactions to the Great Recession," Kyklos, Wiley Blackwell, vol. 69(4), pages 584-603, November.
    11. repec:onb:oenbwp:y::i:129:b:1 is not listed on IDEAS
    12. Jäger, Kai, 2016. "The Role of Regime Type in the Political Economy of Foreign Reserve Accumulation," European Journal of Political Economy, Elsevier, vol. 44(C), pages 79-96.
    13. Bjørnskov, Christian & Dreher, Axel & Fischer, Justina A.V., 2010. "Formal institutions and subjective well-being: Revisiting the cross-country evidence," European Journal of Political Economy, Elsevier, vol. 26(4), pages 419-430, December.
    14. Céline Azémar & Rodolphe Desbordes, 2009. "Public Governance, Health and Foreign Direct Investment in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 18(4), pages 667-709, August.
    15. Qi, Yaxuan & Roth, Lukas & Wald, John K., 2010. "Political rights and the cost of debt," Journal of Financial Economics, Elsevier, vol. 95(2), pages 202-226, February.
    16. Israel Marques II, 2017. "Political Connections and Non-Traditional Investment: Evidence from Public-Private Partnerships in Vocational Education," HSE Working papers WP BRP 56/PS/2017, National Research University Higher School of Economics.
    17. Caroline Rijckeghem & Beatrice Weder, 2009. "Political institutions and debt crises," Public Choice, Springer, vol. 138(3), pages 387-408, March.
    18. Ambrocio, Gene & Gu, Xian & Hasan, Iftekhar, 2022. "Political ties and raising capital in global markets: Evidence from Yankee bonds," Journal of Corporate Finance, Elsevier, vol. 74(C).
    19. Tang, Ryan W. & Buckley, Peter J., 2020. "Host country risk and foreign ownership strategy: Meta-analysis and theory on the moderating role of home country institutions," International Business Review, Elsevier, vol. 29(4).
    20. Sunny Li Sun & Young Jin Ko, 2023. "The Zone of Conformity: A Comparison of Private and State-Controlled Enterprises in M&As," Management International Review, Springer, vol. 63(2), pages 247-284, April.
    21. Tianyou Hu & Siddharth Natarajan & Andrew Delios, 2021. "Sister cities, cross-national FDI, and the subnational FDI location decision," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(7), pages 1279-1301, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:eurjdr:v:32:y:2020:i:1:d:10.1057_s41287-019-00227-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.