|English to Chinese: East Asian Developmental States|
General field: Social Sciences
Detailed field: Economics
|Source text - English|
The role of state, as a follower, regulator or leader, in the economy has been debatable as different approaches provide different answers. The Neo-classical school perceives East Asian states as ‘follower’ of the market and hold the Free Market Theory or Stimulated Market Theory in that they only responded to market situation when setting industrial policies. It is even suggested that they would have done better with lower degree of state intervention. Yet, state intervention is indeed evident. In the cases of Taiwan and Korea, for example, the governments controlled relative prices and controlled foreign investment to regulate local economy. The government was even the determining influences in nearly all business decision. From these, the government in developmental states were to a larger extent a leader.
|Translation - Chinese|