ENGINE OF EXPORT-ORIENTED CATCHING-UP: SMALL FIRMS VERSUS BIG CONGLOMERATES

Author: HONG, WONTACK

Source: International Economic Journal, Volume 14, Number 2, Number 2/Summer 2000 , pp. 161-179(19)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

Big conglomerates dominate the Korean economy as do small firms the Taiwan economy. I characterize Korea as a relatively low-trust society with a pro- chaebol policy bias, and Taiwan as a relatively high-trust society with an anti-big-conglomerate policy bias. I contend that the differences between Korea and Taiwan in size structure of firms reflect the divergent responses of entrepreneurs to different, “semi-permanent” socio-political conditions that determine the costs of market transactions among firms. It may be desirable to change the size structure of firms, but I maintain that the possibility of actual change in the size structure is rather limited. [F14, L11]

Document Type: Research article

DOI: http://dx.doi.org/10.1080/10168730000080016

Affiliations: 1: Seoul University

Publication date: 2000-06-01