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World Affairs Online
In: ICRS Working Paper 2023/5
SSRN
In: ICRS Working Paper Series
SSRN
In: Journal of contemporary China, Band 13, Heft 40, S. 507-522
ISSN: 1067-0564
In this paper it is argued that Taiwan succeeded in developing by deviating from the currently popular "Washington Consensus" strategy in specific ways. In particular, it developed investment strategies that have now reached a crucial "Schumpeterian" phase. This has important implications for high and information technology sectors. Following Schumpeter we assume that innovation in specific firms can have economy-wide effects. Models based on this idea can be shown to have multiple equilibria. The idea of a positive feedback loop innovation system or POLIS is formalized by picking an appropriate sequence of equilibria over time. It is shown that POLIS has empirical relevance by applying the formal model to an actual economy. Recent financial crisis in many Asian countries, most notably South Korea, seems to have reversed the conventional wisdom regarding the East Asian "miracle". This paper applies the concept of a POLIS to show that neither the current view that the miracle was a mirage nor the earlier contrarian view that the growth was a result of factor accumulation only is correct. Ultimately technological transformation - in particular the creation of a positive feedback loop innovation system is what makes the difference between sustained growth and gradual or sudden decline. Although various problems remain in both the real and the financial sectors, the successes of Taiwan in building the preconditions for an innovation system are worth examining. Upon careful examination of Taiwan's system of innovation within the above Schumpeterian model it is found that of all the "miracle" economies Taiwan has the best chance of building a POLIS in the near future. Because of Taiwan's strength in building a POLIS, the PRC can also benefit from continuing contact with Taiwan through trade and FDI from Taiwan. (J Contemp China/DÜI)
World Affairs Online
In: Oxford development studies, Band 30, Heft 3, S. 289-306
ISSN: 1360-0818
Following Schumpeter, we assume that innovation in specific firms, or groups of firms, can have economy-wide effects. Models based on this idea can be shown to have multiple equilibria. The idea of a positive feedback loop innovation system, or POLIS, is formalized by picking an appropriate sequence of equilibria over time. It is shown that POLIS has empirical relevance by applying the formal model to an actual economy. The 1997-98 financial crisis in many Asian countries, most notably South Korea, seemed to have reversed the conventional wisdom regarding the "East Asian miracle". This paper applies the concept of a POLIS to the case of Taiwan. (DSE/DÜI)
World Affairs Online
In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 22, Heft 12, S. 2019-2020
In: Africa today, Band 37, Heft 4, S. 29
ISSN: 0001-9887
In: Contemporary economic policy: a journal of Western Economic Association International, Band 6, Heft 4, S. 130-140
ISSN: 1465-7287
This paper discusses a new approach for studying sanctions based on multipliers derived from the Social Accounting Matrix. I apply the methodology to the South African case and discuss output effects and distributional impacts on factors and households. The results show that the effects of trade sanctions on the South African economy are significant.
In: Africa today, Band 33, Heft 2-3, S. 47
ISSN: 0001-9887
SSRN
Working paper
In: Africa today, Band 43, Heft 4, S. 438-440
ISSN: 0001-9887