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Engine of Export-Oriented Catching-Up: Small Firms

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  • Wontack Hong

Abstract

Big conglomerates dominate the Korean economic as do small firms the Taiwan economy. I characterize Korea as a relatively low-trust society with a pro-chaebol policy bias, and Taiwan as a relatively high-trust society with an anti-big-conglomerate policy bias. I content that the differences between Korea and Taiwan in size structure of firms reflect the divergent responses of entrepreneurs to different, "semi-permanent" socio-political conditions that determine the costs of market transactions among firms. It may be desirable to change the size structure of firms, but I maintain that the possibility of actual change in the size structure is rather limited. [F14, L11]

Suggested Citation

  • Wontack Hong, 2000. "Engine of Export-Oriented Catching-Up: Small Firms," International Economic Journal, Taylor & Francis Journals, vol. 14(2), pages 161-179.
    • Handle: RePEc:taf:intecj:v:14:y:2000:i:2:p:161-179
    DOI: 10.1080/10168730000000024
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    References listed on IDEAS

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    1. Nugent, Jeffrey B., 1996. "What explains the trend reversal in the size distribution of Korean manufacturing establishments?," Journal of Development Economics, Elsevier, vol. 48(2), pages 225-251, March.
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    Cited by:

    1. Seyoum, Belay, 2006. "US trade preferences and export performance of developing countries: Evidence from the generalized system of preferences," International Business Review, Elsevier, vol. 15(1), pages 68-83, February.

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