East Asian Economic Development

2020/2021

Учебный год

ENG

Обучение ведется на английском языке

5

Кредиты

Кто читает:

Факультет мировой экономики и мировой политики

Статус:

Курс по выбору

Когда читается:

2-й курс, 3, 4 модуль

Преподаватель

Емельянова Олеся Николаевна

Course Syllabus

Abstract

East Asian economies have achieved rapid and sustained developments for quite a long period of time. The region as a whole has now been one of the three major poles of the world economy. Some call this phenomenon a miracle, but others see it as a logical consequence of well-concerted efforts of the countries involved. Some emphasize the common elements of the East Asian economic development, while others look into significant differences among individual countries’ development experience. While some argue that the growth engines of East Asian countries are not stoppable, others point out that East Asian miracles are over. This course is divided into two parts. The first part of the course is composed of a series of lectures focused on theoretical issues of Ease Asian development. Students will be introduced and guided to various theoretical debates related with understanding East Asian development. There will be an in-classroom exam at the end of the first part. The second part is mainly composed of students’ presentations on the country cases. Students are required to participate in a research project on a country case/comparative study of development experience by choosing a country from the region. Every student has to make a 10 minutes presentation during the class and develop it into a final term paper to be submitted in the final week.

Learning Objectives

• This course is to help students understand various issues related with East Asian development and get an in-depth knowledge of the process of rapid economic development.

Expected Learning Outcomes

• Students will be familiar with theoretical issues and empirical questions related with the subject.
• Students are also expected to be good at some methodological and technical skills necessary for studying economic development.
• Students will come out of this course with an expertise on one of the regional countries with a special focus on one of the theories dealing with an aspect of economic development of that country chosen by the student.
• This course is designed to provide students with in-depth knowledge of East Asian economic development. At the end, students will acquire an ability to do an independent research for academic and/or business purposes

Course Contents

• Introduction: East Asian Development Experience
  East Asia as a region has emerged from ashes and destruction of war and revolution to a leading pillar of dynamism in the world economy. The achievements of the countries in the region have often been perceived and described in terms of miracle. This miracle, however, has been made by men and women of the region and was made possible in the context of particular domestic and international environment. The miraculous achievements have also been accompanied by human, social, and political costs. We need to see the East Asian miracle from a balanced perspective paying attention to both sunny and dark sides of the story. We also have to see the commonalties as well as variations in their respective pathways of the regional countries from poverty to prosperity.
• An Overview of East Asian Economic Development: Nature, Statistics, and Trends.
  Topics - Achievements of East Asian countries since 1960s - Nature and Characteristics of East Asian Development - Observable Patterns and Variations in East Asian Development - Lessons of East Asian Development Readings *D. Perkins, Ch.1. *The World Bank (1993). The East Asian Miracle, Overview: The Making of a Miracle, pp.1-26. *Shabid Yusurf (2001), “The East Asian Miracle at the Millennium,” In Stiglitz and Yusuf ed. Rethinking East Asian Miracle. Oxford: Oxford University Press. Ch. 1. John Page (1994), “The East Asian Miracle: Four Lessons for Development Policy.” NBER Macroeconomic Annual Vol.9.
• Japanese Development Experience.
  Topics - Japan’s Economic Achievements in Historical Perspective - Japan’s Development Model: Key Components - Japan’s Lost Decades: What Happened and Why? - Japan as a variant of capitalism Readings *Brian Woodall (2017), “The Development of Japan’s Developmental State,” Hua & Hu, Ch.6. *Tanweer Akram(2011) “The Economics of Japan’s Stagnation,” Business Economics Vol.49 No.3. Charlmers Johnson (1982), MITI and the Rise of Japanese Miracle: The Growth of Industrial Policy, 1925-1975. Stanford: Stanford University Press. Rie Taniguchi and Sarah Babb (2009), “The Global Construction of Development Models: the US, Japan and the East Asian Miracle,” Socio-Economic Review Vol7 Issue 2. Topics - Japan’s Economic Achievements in Historical Perspective - Japan’s Development Model: Key Components - Japan’s Lost Decades: What Happened and Why? - Japan as a variant of capitalism Readings *Brian Woodall (2017), “The Development of Japan’s Developmental State,” Hua & Hu, Ch.6. *Tanweer Akram(2011) “The Economics of Japan’s Stagnation,” Business Economics Vol.49 No.3. Charlmers Johnson (1982), MITI and the Rise of Japanese Miracle: The Growth of Industrial Policy, 1925-1975. Stanford: Stanford University Press. Rie Taniguchi and Sarah Babb (2009), “The Global Construction of Development Models: the US, Japan and the East Asian Miracle,” Socio-Economic Review Vol7 Issue 2.
• Korean Development Experience.
  Topics - Key Characteristics of Korea’s Development Model - Political Authoritarianism and Rapid Growth: Necessary and Complementary? - Democratization and the Pursuit of a New Development Model: Successful? - Globalization, Crisis, and What Future? Readings *Ha-Joon Chang (2007), Ch.2. *Chung Lee (1992), “The Government, financial System, and Large Private Enterprises in Economic Development of South Korea,” World Development Vol.20 No.2, pp.187-197. Kim & Heo (2017), “Comparative Analysis of Economic Development in South Korea and Taiwan,” Asian Perspective Vol.41, pp.17-41. Charles Harvie and Hyun-Hoon Lee (2003), “Export-Led Industrialization and Growth: Korea’s Economic Miracle, 1962-1989. Australian Economic History Review Vol.43 No.3. Nahee Kang (2010), “Globalization and Institutional Change in the State-Led Model: The Case of Corporate Governance in South Korea. New Political Economy Vol.15 Issue 4. Jones & Sa Kong (1980), Government, Business, Entrepreneurship in Economic Development, Ch.1. Introduction.
• Taiwanese Development Experience.
  Topics - Taiwan’s Economic Achievements in Historical Perspective - Taiwan’s Development Model: Key Components - Taiwan’s variant of capitalism Readings *D. Perskins, Ch.3. Kim & Heo (2017), “Comparative Analysis of Economic Development in South Korea and Taiwan,” Asian Perspective Vol.41, pp.17-41. Robert Wade. Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization 2nd ed. Princeton: Princeton University Press, 2003.
• Development Experience of Singapore and Hong Kong.
  Topics - Economic Achievements of Singapore and Hong Kong - Development Model: Key Components - Variants of capitalism in Singapore and Hong Kong Readings *D. Perskins, Ch.3. *Hal Hill (2014), “Is There a Southeast Asian Development Model?” Malaysian Journal of Economic Studies Vol.51(Special Issue), pp.89-111. Anne Booth (1999), “Initial Conditions and Miraculous Growth: Why is South East Asia Different from Taiwan and South Korea?” World Development Vol.27 No.2 pp.301-321. McKinsey global Institute (2014), “Southeast Asia at the Crossroads: Three Paths to Prosperity.”
• Chinese Development Experience.
  Topics - Identifying China’s Development Model - Does China Follow East Asia in Development? - Can China sustain Rapid Growth? - Middle Income Trap or Political Limits? Readings *D. Perkins, Ch.5. *Andrea Boltho and Maria Weber (2009), “Did China Follow the East Asian Development model?” European Journal of Comparative Economics Vol.2 No.2. Eswar Prasad (2009), “Is the Chinese Growth Miracle Built to Last” China Economic Review Vol.20 No.1. Weixing Chen(2017), “China’s Development Path: Joys and Worries,” In Hua and Hu eds. Ch.10.
• Southeast Asian Development Experience.
  Topics - Southeast Asian Countries: Similarities and Differences - Southeast Asian Development Model? - ASEAN Regional Cooperation and Economic Development Readings *D. Perskins, Ch.4. *Hal Hill (2014), “Is There a Southeast Asian Development Model?” Malaysian Journal of Economic Studies Vol.51(Special Issue), pp.89-111. Anne Booth (1999), “Initial Conditions and Miraculous Growth: Why is South East Asia Different from Taiwan and South Korea?” World Development Vol.27 No.2 pp.301-321. McKinsey global Institute (2014), “Southeast Asia at the Crossroads: Three Paths to Prosperity.”
• Mid-term Exam.
  Read the guideline below!
• Theoretical Debates on East Asian Development
  Topics - Miracle or Not? - State-Led or Market-Oriented? - Dependent Development? Flying Geese Model? - Is there an “East Asian Model”? Can It be Copied by Other Regions or Countries? Readings *D. Perkins, Ch.2. *Paul Krugman (1994), “The Myth of Asia’s Miracle,” Foreign Affairs, Vol.73 Issue 6. *Shiping Hua (2017), ”Introduction: East Asian Development Model,” in Hua and Hu, Ch.1. Paul Kuznets (1988), “An East Asian Model of Economic Development: Japan, Taiwan, and South Korea,” Economic Development and Cultural Change, Vol.36 No.3. William Cline (1982), “Can the East Asian Model of Development be Generalized?” World Development, Vol.10 Issue 2. Masahiko Aoki (2013), “Historical Sources of Institutional Trajectories in Economic Development: China, Japan and Korea Compared.” Socio-Economic Review, Vol.11. Robert Wade (1992), “East Asia’s Economic Success: Conflicting Perspectives, Partial Insights, Shaky Evidence,” World Politics Vol.44 pp.270-320.
• The Role of Government in Economic Development: State-Led Development?
  Topics - State and Market in Economic Development - What Roles for the State? - Nature and Characteristics of Developmental State - Possibilities and Limits of the Development State Readings *D. Perkins, Ch.3. *Chalmers Johnson (1999), “The Developmental State: Odyssey of a Concept’, in M. WooCumings (ed.) The Developmental State, Ithaca, NY: Cornell University Press, pp. 32–60. *Robert Wade (2005), “Bringing the State Back in: Lessons from East Asia’s Development Experience,” International Politics and Society No.2. Shigeko Hayashi (2010), “The Developmental State in the Era of Globalization.” The Pacific Review Vol.23 No.1. David Kang (2013), “The Origins of the Developmental State in East Asia.” European Political Science Vol.15 No.1. Richard Stubbs (2009), “What Ever Happened to the East Asian Developmental State? The Unfolding Debate,” The Pacific Review Vol.21 No.1, pp.1-22.
• Trade, Industry and Development: Export-Led Development?
  Topics - Trade for Underdevelopment vs Development - Export-Oriented Industrialization (EOI) vs Import-substitution Industrialization (ISI) - International Context and Domestic Requirements Readings *D. Perkins, Ch.3. *Lawrence & Weinstein (2001), “Trade and Growth: Import Led or Export Led? Evidence from Japan and Korea” in Stiglitz & Yusurf, Ch.10. The World Bank (1993), Ch.6. John Weiss (2005), Export and Industrial Policy: Lessons from East Asian Miracle Experience, ADB Institute Discussion paper No.26. Christian Dregger and Dierk Herzer (2013), “A Further Examination of the Export-Led Growth Hypothesis,” Empirical Economics Vol.45 Issue 1.
• Finance and Development: Financial Repression and High Savings Rate?
  Topics - What is Financial Repression and Why? - How to Achieve High Savings Rate? - Resource Allocation by the State, Why and How? - Question over Efficiency Readings *Arvid Lukauskas (2002), “Financial Restriction and the Developmental State in East Asia,” Comparative Political Studies Vol.35 No.4. *Hung Fu-Sheng (2013), “Financial Restraint, Capital Investment, and Economic Growth,” Academia Economic Papers Vol.41 No.3. Panicos Demetriades (2001), “Financial Restraints in the South Korean Miracle,” Journal of Development Economics, Vol.64 No.2. Gerard Adams (2003), “Why are Savings Rate in East Asia So High?: Reviving the Life Cycle Hypothesis “ Empirical Economics Vol.28 No.2.
• Regional Cooperation and Development: Product-Life Cycle and Flying Geese?
  Topics - Flying Geese Model? - East Asian Production Networks? - Market-Led Regional Cooperation? - ASEAN+3, Chiang Mai and Beyond: Regional Cooperation after the 1997 Financial Crisis Readings *Christopher Dent (2008/2016). East Asian Regionalism. Routledge: 2016, Chs. 1 & 2. *Edward Lincoln (2004), East Asian Economic Regionalism. Washington DC: The Brooking Institution, Chs. 1 & 2. Paul de Grauwe (2016), “The Rise of China and Regional Integration in East Asia,” Scottish Journal of Political Economy Vol.63 No.1. Mark Baeson (2011), “Crisis dynamics and Regionalism: East Asia in Comparative Perspective” The Pacific Review Vol.24 No.3.
• East Asian Financial Crisis and Its Aftermath
  Topics - Causes of the Crisis: Internal or External? - Nature of and Variations in Crisis Responses - Consequences of the Crisis: Economic, Social, and Political - East Asian Crisis and Global Imbalances Readings *D. Perkins, Ch.6. *Ha-Joon Chang (2007), Ch.5. Takatoshi Ito (2001), “Growth, Crisis, and the Future of Economic Recovery in East Asia,” Stiglitz & Yusurf (2001), Ch. 2. Jaymin Lee (1999), “East Asian NIEs' Model of Development: Miracle, Crisis, and Beyond,” The Pacific Review Vol.12 No.2, pp.141-162. Henry Wai-chung Yeung (2017), “State-Led Development Reconsidered: The Political Economy of State Transformation in East Asia since the 1990s.” Cambridge Journal of Regions, Economy and Society Vol.10 Issue 1. Florian Brugger (2016), “Asia’s Reserve Accumulation: Part of a New Paradigm.” Asian Economic and Financial Review Vol.6 No.8.
• The Middle-Income Trap and East Asia
  Topics - Middle Income Trap: What It is and Why? - Relevance of the Middle-Income Trap to East Asia - Is China in the Trap? Readings *Doner & Schneider (2016), “The Middle-Income Trap: More Politics than Economics,” World Politics Vol.68 No.4, pp.608-644. *Yiping Huang (2016), “Can China Escape the Middle-Income Trap?,” China Economic Journal, Vol.9 No.1, pp.17-33. Eva Paus (2012), “Confronting the Middle-Income Trap: Insights from Small Latercomers,” Studies in Comparative International Development Vol.47, pp.115-138. Ye & Robertson (2016), “On the Existence of a Middle-Income Trap,” Economic Record Vol.92 No.297, pp.173-189. Zeng & Fang (2014). “Between Poverty and Prosperity: China’s Dependent Development and the ‘Middle-Income Trap’,” Third World Quarterly, Vol.35 No.6, pp.1014-1031.
• Wrap-up Session: Recasting the East Asian Development Model
  Topics - Is East Asian Development Model Still Relevant? - Globalization and Developmental State: Conflictual or Complementary? - Whither Post-Crisis East Asian Development? Readings *Ha-Joon Chang, Ch.7. *Yoon-Shik Park (2017), “Need for a Paradigm Change for the East Asian Economy.” In Hua and Hu eds. Ch.2. Erik Thorbecke and Henry Wan Jr. (2004), “Revisiting East (and South East) Asia’s Development Model. Paper presented at a Cornell Conference on Seventy Five Years of Development, Ithaca, NY. May 7-9, 2004. Jene Kwon and Jung Mo Kang. (2011), “The East Asian Model of Economic Development”. Asia-Pacific Economic Literature Vol.25 No.2. Ipek Danju et al. (2014), “The East Asian Model of Development and Developing Countries.” Procedia No.119.
• Exam

Assessment Elements

• Class Attendance
• Class Participation
• Mid-Term Exam
• Term Exam

Interim Assessment

• Interim assessment (3 module)
  0.1 * Class Attendance + 0.5 * Class Participation + 0.4 * Mid-Term Exam
• Interim assessment (4 module)
  0.1 * Class Attendance + 0.5 * Class Participation + 0.4 * Term Exam

Bibliography

Recommended Core Bibliography

• Boltho, A., & Weber, M. (2009). Did China follow the East Asian development model?
• Booth, A. (1999). Initial Conditions and Miraculous Growth: Why is South East Asia Different From Taiwan and South Korea? World Development, 2, 301.
• Dent, C. M. (2008). East Asian Regionalism. Routledge.
• Hill, H. (2015). Is there a southeast Asian development model?
• Huang, Y. (2016). Can China escape the middle-income trap? China Economic Journal, 9(1), 17–33. https://doi.org/10.1080/17538963.2015.1122882
• Joseph E. Stiglitz, & Shahid Yusuf. (2001). Rethinking the East Asian Miracle. The World Bank. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.wbk.wbpubs.13969
• Lee, C. H. (1992). The government, financial system, and large private enterprises in the economic development of South Korea. World Development, 2, 187.
• Lincoln, E. J. (2004). East Asian economic regionalism. Council of Foreign Relations / Brookings Institution Press.
• Perkins, D. H. (2013). East Asian Development. Cambridge, Massachusetts: Harvard University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=575617
• Tanweer Akram. (2014). The Economics of Japan’s Stagnation. Business Economics, 3, 156.

Recommended Additional Bibliography

• Beeson, M. (2011). Crisis dynamics and regionalism: East Asia in comparative perspective. Pacific Review, 24(3), 357–374. https://doi.org/10.1080/09512748.2011.577538
• Christian Dreger, & Dierk Herzer. (2011). A Further Examination of the Export-Led Growth Hypothesis. Discussion Papers of DIW Berlin.
• Florian Brugger. (2016). Asias Reserve Accumulation: Part of a New Paradigm. Asian Economic and Financial Review, 8, 457.
• Harvie, C., & Lee, H.-H. (2003). Export-Led Industrialisation and Growth - Korea’s Economic Miracle 1962-89. Economics Working Papers.
• Hayashi, S. (2010). The developmental state in the era of globalization: beyond the Northeast Asian model of political economy. Pacific Review, 23(1), 45–69. https://doi.org/10.1080/09512740903398330
• Henry Wai-chung Yeung. (2017). State-led development reconsidered: the political economy of state transformation in East Asia since the 1990s. Cambridge Journal of Regions, Economy and Society, (1), 83. https://doi.org/10.1093/cjres/rsw031
• Lee, J. (1999). East Asian NIE’s model of development: miracle, crisis, and beyond. Pacific Review, 12(2), 141. https://doi.org/10.1080/09512749908719285
• Paul De Grauwe, & Zhaoyong Zhang. (2016). The Rise of China and Regional Integration in East Asia. Scottish Journal of Political Economy, 1, 1. https://doi.org/10.1111/sjpe.12107
• Taniguchi, R., & Babb, S. (2009). The global construction of development models: the US, Japan and the East Asian miracle. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.114AF38E
• Wade, R. (2004). Governing the Market : Economic Theory and the Role of Government in East Asian Industrialization. Princeton, N.J.: Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1836843
• Ye, L., & Robertson, P. E. (2016). On the Existence of a Middle-Income Trap. Economic Record, 92(297), 173–189. https://doi.org/10.1111/1475-4932.12245