Title

Government intervention or market liberalization : the Korean financial crisis as a case of market failure

Document Type

Journal article

Source Publication

Progress in Development Studies

Publication Date

1-1-2004

Volume

4

Issue

1

First Page

47

Last Page

57

Keywords

Capital accounts, economic liberalization, Korean financial crisis, states and markets in development

Abstract

This paper questions the conventional view that the Korean financial crisis of 1997 was simply the result of pervasive government intervention in the economy. While Korea has had a long history of state involvement, and while state policies did contribute to inefficient resource allocation and inefficiencies, the strategy of market liberalization introduced in the early 1990s hardly performed any better. In fact, this paper illustrates that, although not the immediate trigger of the Korea's financial and currency meltdown, the poorly sequenced and implemented financial liberalization contributed greatly to the scale and pace of the crisis.

DOI

10.1191/1464993404ps075oa

Print ISSN

14649934

E-ISSN

1477027X

Publisher Statement

Copyright © Arnold 2004

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Recommended Citation

Sharma, S. D. (2004). Government intervention or market liberalization: The Korean financial crisis as a case of market failure. Progress in Development Studies, 4(1), 47-57. doi: 10.1191/1464993404ps075oa