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State Intervention in ‘Outward-looking’ Development: Neoclassical Theory and Taiwanese Practice

In: Developmental States in East Asia

Author

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  • Robert Wade

Abstract

If the wealth of any nation has multiplied miraculously, that nation must be Taiwan.2 Taiwan has experienced real GDP growth of 10.6 per cent a year from 1965 to 1979; no deterioration in income distribution; improvement in literacy and life expectancy better than in almost all other developing countries; increases in real manufacturing earnings of 15 per cent a year from 1960 to 1979; unemployment at less than 2 per cent since 1970. Income per person is three to ten times higher than China, depending on which figures are used. In 1953 Taiwan had a per capita income below the Mediterranean countries, well below any Latin American country, and well below Malaysia. By 1982 this had reached US$2500, substantially higher than Malaysia, Brazil and Mexico, and on a par with Portugal, Argentina and Chile.

Suggested Citation

  • Robert Wade, 1988. "State Intervention in ‘Outward-looking’ Development: Neoclassical Theory and Taiwanese Practice," Palgrave Macmillan Books, in: Gordon White (ed.), Developmental States in East Asia, chapter 2, pages 30-67, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-19195-6_2
    DOI: 10.1007/978-1-349-19195-6_2
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    Citations

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    Cited by:

    1. Huck-ju Kwon, 2007. "Transforming the developmental welfare states in East Asia," Working Papers 40, United Nations, Department of Economics and Social Affairs.
    2. Jai S. Mah, 2015. "R&D policies and development of technology-intensive industries of Taiwan," Progress in Development Studies, , vol. 15(2), pages 125-138, April.
    3. Carsten A. Holz, 2020. "PRC Industrial Policies Postdate Rather Than Lead Economic Activity," CESifo Working Paper Series 8097, CESifo.
    4. Guendalina Anzolin & Amir Lebdioui, 2021. "Three Dimensions of Green Industrial Policy in the Context of Climate Change and Sustainable Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 371-405, April.
    5. Székely-Doby, András, 2017. "A kínai fejlesztő állam kihívásai [Challenges to the Chinese developmental state]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 630-649.

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