1. Chapter 7
ECON
Li minqi
Group members:  Zeng Qi
                                    Zou jianlang
                   

2. Chapter 7 Japan South Korea Taiwan Singapore Hong Kong South-east Asia
China

6. Outline The East Asian State and Production Picking the Winners
Foreign Direct Investment Policies
East Asian Companies
Domestic Political Economy of Production
Conclusion

7. Picking the Winners
Japan: is the first East Asian nation to adopt industrial policy and set a successful example for others
South Korea: take industrial policy to another level (early 1960s)
Taiwan: encouraged industrial upgrading to heavy industries
Singaporean

8. Picking the Winners
Hong Kong: limited intervention in the economy while adopting measures to keep production cost low.
Malaysian: emphasized manufacturing
Thai: not engaged in industrial policy as actively as Northeast Asian countries
Chinese: in 1950s-----promoted heavy industrialization

9. Foreign Direct Investment Policies
Inward investment
Japan & South Korea------largely discouraged FDI
Other East Asian economies welcome foreign investment
China enacted a joint venture law in 1979
provided major incentive for foreign investors since the 1980
Vietnamese: actively seeks FDI-----following the Chinese and ASEN models

10. East Asian Companies
East Asian companies are the engines of East Asian economic growth and economic transformation (become more prominent globally)
Japan-----led the way
Brand name: Sony, Toshiba, Toyota, Honda, Nissan…

11. East Asian Companies South Korean: followed Japan’s example
Brand name: Samsung, LG, SK…
Large chaebol have powered South Korean economic growth

12. East Asian Companies Rank

13. Domestic Political Economy of Production
Why production has been so important for East Asian?
Strong economic base for national power
The employment that manufacturing provides

14. Conclusion Two extreme
The South Korean state has been the most detail-oriented interventionist (learning from Japan and moving to another level)
The Hong Kong-----basically adopted a free-market approach

15. Conclusion
East Asian advantages: production, proximity and skill

16. Thanks!