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

In: Developmental States in East Asia

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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. Carsten A. Holz, 2020. "PRC Industrial Policies Postdate Rather Than Lead Economic Activity," CESifo Working Paper Series 8097, CESifo.
    3. 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.
    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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