POL SCI 51A Lecture Notes - Lecture 16: Industrial Technology Research Institute, Tsmc, Reverse Engineering
25 Mar 2016
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Document Summary
However, some east asian naions begin to get rich. According to dependency theory, this was impossible since they were colonies and they were dependent. East asian miracle: rapid economic growth, growth with relaive equity, industrial upgrading and diversiicaion. Taiwan and korea have a high number of patents; great innovaions: export-led economic development. These economies plugged into the global economy and took advantage of it to become rich. As smith said, take advantage of their greatest comparaive advantage. Open to foreign direct investment don"t use the dependency theory, which says to detach from the world system. The east-asian miracle worked by plugging in the global economy the invisible hand of the market. Where did all these irms come from: government subsidies. Government intervenion helped: government investment, disciplined labor state policies which destroy a union; that"s how they accomplished cheap labor, manipulate the market the visible hand of government picking and making.
