1. East Asian Financial Systems as a Challenge to Economics: Lessons from Taiwan.
- Author
-
Wade, Robert
- Subjects
ECONOMIC policy ,SAVINGS ,INDUSTRIALIZATION ,DEBT-to-equity ratio ,TAIWANESE economic policy, 1975- ,FISCAL policy ,INDUSTRIAL organization (Economic theory) ,ECONOMIC development ,CAPITAL investments ,GOVERNMENT policy ,ECONOMICS - Abstract
Traditional Western economic theory has long argued that financial "rigidity" is bad and restricts the free flow of market forces. However, the financial systems of several East Asian nations, particularly Taiwan, demonstrate that their illiberal practices have in fact been a positive factor in their industrialization and their much higher investment and savings rates as compared to traditional economies. The growth and financial success evidenced by the close link between the financial system and industrial policy of these nations has presented a real challenge to mainstream economic theory and practice in Western nations. [ABSTRACT FROM AUTHOR]
- Published
- 1985
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