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
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
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