POLI SCI 240 Lecture Notes - Lecture 19: Capital Market, Keiretsu, Rhineland
29 Mar 2018
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Document Summary
Gradual transition from low cost, low knowledge industry (textiles) to higher intensity. No need for strong public educational system. Low cost, low knowledge, learning by doing. Few efficiencies of scale and low barriers to entry. In order to start these business you went to your family, your friends to fund you financially. High barriers to entry scale and cost. Industry-finance nexus got-banks-industry: policy responses in late industrializers: neo-mercantilism. Not focused on military conflict as tradition mercantilism. Authorized cartels to create efficiencies of scale (japan zaibatsu, s. korea: neo-mercantilism. Government financing and/or close ties between finance and industry. Firms network and cross-holding ownership: conclusion: the later the period of industrialization: the greater the likelihood of neomercantilism. The development of the state model (the east asia model). Mobilization of society by the state to catch up. 3 versions of capitalism: anglo saxon, neomercantilism, east asia, the rhenish model (german corporatists; welfare state)
