TY - JOUR
T1 - Government intervention or market liberalization : the Korean financial crisis as a case of market failure
AU - SHARMA, Shalendra D.
PY - 2004/1/1
Y1 - 2004/1/1
N2 - 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.
AB - 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.
KW - Capital accounts
KW - economic liberalization
KW - Korean financial crisis
KW - states and markets in development
UR - http://commons.ln.edu.hk/sw_master/3475
UR - https://www.scopus.com/inward/record.uri?eid=2-s2.0-34248053184&doi=10.1191%2f1464993404ps075oa&partnerID=40&md5=6618d2d63f7ee69eb2434f89dd754009
U2 - 10.1191/1464993404ps075oa
DO - 10.1191/1464993404ps075oa
M3 - Journal Article (refereed)
SN - 1464-9934
VL - 4
SP - 47
EP - 57
JO - Progress in Development Studies
JF - Progress in Development Studies
IS - 1
ER -