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Reflections

Author

Listed:
  • Gustav Ranis

    (Economic Growth Center, Yale University)

Abstract

This paper examines the causes of Taiwan's exceptional economic performance, focusing on the influence of organizational and policy choices and how Taiwan's example differs from those of more typical less-developed countries. After briefly citing cultural factors as proposed by his late colleague John Fei, Ranis proceeds to explore the issues of organic nationalism, natural resource endowment, access to foreign capital and other political factors that have produced such economic success. The author demonstrates how Taiwan's unique combination of strong organic nationalism, meager natural resources and limited access to foreign capital helped curb the Extended Dutch Disease phenomenon endemic in LDCs. In addition, the government's non-oscillatory, relatively laissez-faire fiscal and monetary policies, encouragement of technological innovation, plus generous educational, R&D and infrastructural expenditures have contributed to low rates of inflation and high rates of GDP growth. The paper finally suggests a positive correlation between democracy and economic development.

Suggested Citation

  • Gustav Ranis, 1997. "Reflections," Working Papers 786, Economic Growth Center, Yale University.
    • Handle: RePEc:egc:wpaper:786
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp786.pdf
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    References listed on IDEAS

    as
    1. Bhagwati, Jagdish N & Krueger, Anne O, 1973. "Exchange Control, Liberalization, and Economic Development," American Economic Review, American Economic Association, vol. 63(2), pages 419-427, May.
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    6. Olson, Mancur, 1993. "Dictatorship, Democracy, and Development," American Political Science Review, Cambridge University Press, vol. 87(3), pages 567-576, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic Development; LDC; Political Economy; Taiwan; Extended Dutch Disease; Democracy;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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