Two Crises, Different Outcomes: East Asia and Global Finance

Pempel, T. J.; Tsunekawa, Keiichi; Cook, Malcolm

doi:10.1355/ae33-3i

Cited by 7 publications

(2 citation statements)

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“…Scholars generally agree that East Asian states collectively improved their financial system and corporate governance after the crisis, especially the most severely affected states-South Korea, Thailand, and Indonesia (Pempel & Tsunekawa, 2015). South Korea established a new financial a financial supervisory commission to oversee its financial sector.…”

Section: After the Crisismentioning

confidence: 99%

Institutional Change and Economic Growth in East Asia after the Asian Financial Crisis, 1997-98

Chung¹

2020

KJPS

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Theories on institutional change assert that exogenous shocks are critical in transforming path-dependent institutions. There is not much empiric research, however, that has investigated whether that is indeed the case. To fill this gap, this study investigates the effects of institutional quality on economic growth with a focus on East Asia before and after the 1997-98 Asian financial crisis, which delivered a critical shock in economic activities and institutions in East Asia. Using panel data analysis from 1981 and 2007, I investigate whether the effect of institutional quality on economic growth differed in East Asia compared to rest of the world before the crisis and whether such relationship changed after the crisis. Using two-way fixed effects model, the estimation shows that the effect of institutional quality on economic growth was positive on average for the rest of the world after the crisis but negative for East Asia. The negative coefficient was particularly strong for the three countries—South Korea, Indonesia, and Thailand—that suffered the most during the crisis. However, in the long term, there was no significant change of this negative effect.

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Section: After the Crisismentioning

confidence: 99%

Institutional Change and Economic Growth in East Asia after the Asian Financial Crisis, 1997-98

Chung¹

2020

KJPS

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“…Studies on institutions generally posit that institutional reform is rare but generally takes place under abrupt and large changes in the economic environment (Levchenko, 2013). It has been argued that the Asian financial crisis of 1997-1998 -one of the most devastating economic crises in East Asia's history -created an opportunity to implement a sweeping reorganization of powerful industrial groups, such as big businesses (Pempel & Tsunekawa, 2015). Indeed, the International Monetary Fund (IMF) required institutional reforms for the three most affected countries -Indonesia, South Korea and Thailand -with the intention to liberalize their markets and enhance rule of law in exchange for bailing them out (Chung, 2020b).…”

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confidence: 99%

Trade patterns and institutional change in East Asia

Choi

Chung²

2021

Econ of Transit and Inst Chang

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We investigate how trade patterns -institutionally intensive exports (IIX) -affect institutional quality in East Asia compared to the rest of the world, and whether the effect changed due to the Asian financial crisis. To examine this, we use panel data of 117 countries for the period 1988-2007. Our fixed effect model estimation reveals that the effect of IIX on institutional quality is negative and significant for East Asia, while the effect is insignificant

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Is International Leadership Changing Hands or Disappearing? China and the USA in Comparative Perspective

Beeson¹,

Watson²

2019

Asian Perspective

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Two Crises, Different Outcomes: East Asia and Global Finance

Cited by 7 publications

References 0 publications

Institutional Change and Economic Growth in East Asia after the Asian Financial Crisis, 1997-98

Institutional Change and Economic Growth in East Asia after the Asian Financial Crisis, 1997-98

Trade patterns and institutional change in East Asia

Is International Leadership Changing Hands or Disappearing? China and the USA in Comparative Perspective

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