A search for robust East Asian development models after the financial crisis: Mutual learning from East Asian experiences

Abstract

The purpose of this paper is to search for new robust East Asian economic development models following the financial crisis. Specifically, this paper addresses both robustness and sustainability of Korea's Chaebol-led model, Taiwan's SMEs-led model, and Malaysia's FDI-led model, respectively. East Asia's new development paradigm can be reformulated not only by adopting and learning advanced financial innovations of global standards in the framework of Gershenkron's advantages of backwardness, but also in the concept of mutual learning from both strengths and weaknesses of development models of the three countries. East Asia has neglected too long some inherent wisdoms that are contained in its miracle models, yet it shows that their different paths to development may lead to a positive policy convergence. © 2001 Elsevier Science Inc.