Abstract
The rise of East Asian Tigers Taiwan and South Korea (hereafter Korea) since the 1970s has supported an empirical claim for the importance of the role of the state in economic development. The chief conventional explanation of postwar East Asian success, also known as the developmental state thesis, focuses on the capabilities of the East Asian states in shifting to export-led industrialization (in contrast to the lack of such state capabilities in Latin America and India) and the emphasis on industrial policies to induce entrepreneurship. This process is accomplished by encouraging firms through the mechanism of finance to enter and compete in targeted sectors (like technology-intensive industries) which they would otherwise not be willing or able to enter.
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Hsieh, M.F. (2016). Embedding the Economy: The State and Export-Led Development in Taiwan. In: Chu, Yw. (eds) The Asian Developmental State. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137476128_4
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DOI: https://doi.org/10.1057/9781137476128_4
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