Neither states nor markets. The role of economic organization in Asian development

This article shows that economic organization has independent and direct effects on the course of economic development. Most existing theories of economic development ignore the dynamic role of inter-firm interactions and, instead, stress state policies and macro-economic forces as the decisive factors creating a country's industrial structure. Our research shows that developing economies have emergent organizational dimensions that, once they become going concerns, create momentum and trajectory. Using South Korea and Taiwan as ease studies, this article demonstrates that the divergent economic outcomes of these two countries can best be explained by emerging differences in the organization of economies.

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