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Export Intermediation and the Structure of Industry in Korea and Taiwan

机译:出口中介与韩国和台湾的工业结构

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Footwear manufacturers have enjoyed substantial export success in both Korea and Taiwan, but in Korea this success has been characterized by the expansion of a few large firms, while in Taiwan it has meant the proliferation of a great many smaller firms. The paper theorizes that the expansion in the number, rather than size, of footwear firms in Taiwan is due to a parallel expansion in the number of footwear exporters. A general equilibrium model of the parallel expansion is sketched, accompanied by an analysis of the impact of initial conditions in Taiwan and Korea on the development of the footwear industry in each country. Korea, which was relatively more backward than Taiwan, provided incentives to large footwear firms to expand, while Taiwan did not. The study concludes that Korean-type incentives to individual firms carry with them the risk of fueling a political-economic process characterized by a high degree of rent-seeking and accompanying socially unproductive policies. By contrast, incentives to exporters emerges as a means of accelerating industrial expansion without the risk of rent-seeking.

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