Book contents
- Frontmatter
- Contents
- List of Contributors
- Acknowledgments
- 1 Law and Development in Middle-Income Countries
- Part I The Politics of Development in Middle-Income Countries
- Part II Middle-Income Countries in a Globalized Economy
- 4 The Rise of Middle-Income Countries in the International Trading System
- 5 The Middle Intellectual Property Powers
- 6 Growing Wealth in East Asian Middle-Income Countries with Transnational Production Regimes
- Part III Good Governance and the Rule of Law in Middle-Income Countries
- Part IV Socioeconomic Challenges in Middle-Income Countries
- Part V International Donor Strategies for Middle-Income Countries
- Appendix Selected Country Data as of 2011
- Index
- References
6 - Growing Wealth in East Asian Middle-Income Countries with Transnational Production Regimes
Published online by Cambridge University Press: 05 June 2014
Book contents
- Frontmatter
- Contents
- List of Contributors
- Acknowledgments
- 1 Law and Development in Middle-Income Countries
- Part I The Politics of Development in Middle-Income Countries
- Part II Middle-Income Countries in a Globalized Economy
- 4 The Rise of Middle-Income Countries in the International Trading System
- 5 The Middle Intellectual Property Powers
- 6 Growing Wealth in East Asian Middle-Income Countries with Transnational Production Regimes
- Part III Good Governance and the Rule of Law in Middle-Income Countries
- Part IV Socioeconomic Challenges in Middle-Income Countries
- Part V International Donor Strategies for Middle-Income Countries
- Appendix Selected Country Data as of 2011
- Index
- References
Summary
INTRODUCTION
Since the 1960s, law and development theorists have prescribed law-based measures for stimulating economic development in East Asian middle-income countries (MICs). During the last decade, a growing number of scholars from different disciplines claim that rapid economic growth in this region is taking place without fully functioning legal systems. They argue that consistent and pragmatic state developmental policies, more than formal laws and legal institutions, are the main ingredients for economic growth. This chapter provides a complementary explanation for economic growth in East Asia. It posits that transnational production regimes (TPRs) are responsible for generating much wealth creation in East Asian MICs over the last thirty years. TPRs are structured around supply chain and investment networks that transfer goods, capital, and knowledge among firms in high-income countries (HICs) and MICs.
This chapter musters evidence that, over the last three decades, intra-Asian TPRs have incrementally displaced Euro-American TPRs as the main source of technical and regulatory knowledge in East Asian MICs. This transformation has three principle implications: first, knowledge transferred through TPRs largely bypasses domestic laws and legal institutions and directly influences East Asian firms; second, intra-Asian TPRs are more likely than Euro-American TPRs to convey the regulatory knowledge needed to innovate and upgrade into higher value-added activities in world markets; and third intra-Asian TPRs are a key factor in generating wealth creation and raising the next wave of East Asian countries into the ranks of HICs.
- Type
- Chapter
- Information
- Law and Development of Middle-Income CountriesAvoiding the Middle-Income Trap, pp. 108 - 128Publisher: Cambridge University PressPrint publication year: 2014
References
and , Rule of Law Reform and Development: Charting the Fragile Path of Progress (Edward Elgar Publishing, 2008).CrossRefGoogle Scholar
, “Economic Development and the Rights Hypothesis: The China Problem,” American Journal of Comparative Law 51 (2003): 89CrossRefGoogle Scholar
, “From Demsetz to Deng: Speculations on the Source,” New York University Journal of International Law and Politics 41, no. 3 (2009): 522–602.Google Scholar
and , “Economically Benevolent Dictators: Lessons for Developing Democracies,” American Journal of Comparative Law 59 (2011): 277.CrossRefGoogle Scholar
and , “Modes of Network Governance: Structure, Management, and Effectiveness,” Journal of Public Administration Research and Theory 18, no. 2 (2008): 229–52, at 231.CrossRefGoogle Scholar
and , The New Global Supply Base – New Challenges for Local Suppliers in East Asia (Industrial Performance Centre, Massachusetts Institute of Technology, 2003)Google Scholar
, “International Production/Distribution Networks in Indonesia,” The Developing Economies 43 (2005): 17–38CrossRefGoogle Scholar
, “Can Survey Evidence Shed Light on Spillovers from Foreign Direct Investment?,” World Bank Research Observer 23, no. 2 (2008): 139–59.CrossRefGoogle Scholar
and , ed., Handbook of Organizational Learning and Knowledge Management (Wiley, 2011)
, “Foreign Direct Investment in Developing Countries and Growth: A Selective Survey,” Journal of Development Studies 34, no. 1 (1997): 1–34CrossRefGoogle Scholar
and , “Innovative Capability in MNC Subsidiaries: Evidence from Four European Transition Economies,” Post-Communist Economies 20, no. 1 (2008): 57–75.CrossRefGoogle Scholar
, and , “The Role of Formal Contract Law and Enforcement in Economic Development,” Virginia Law Review 92 (2006): 1517–80.Google Scholar
, Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization (Princeton University Press, 1990).Google Scholar
, “Privatized Regulation: Japanese Regulatory Style in Comparative and International Perspective,” Fordham International Law Journal 20 (1997): 396.Google Scholar
, “Japanese Foreign Investment Regulation: Semantics and Reality,” New York Law Forum 18 (1972–3): 355Google Scholar
, “Law and Development Orthodoxies and the Northeast Asian Experience,” in Law and Development in Asia, ed. and (Routledge, 2012), 7, 16–30.Google Scholar
, MITI and the Japanese Miracle: The Growth of Industry Policy (Stanford University Press, 1982).Google Scholar
, , and , “Keiretsu Networks and Corporate Performance in Japan,” American Sociological Review 61, no. 1 (February 1996): 67–88.CrossRefGoogle Scholar
and , Japan’s Network Economy: Structure, Persistence, and Change (Cambridge University Press, 2004), 147–204.CrossRefGoogle Scholar
, Maximizing U.S. Interests in Science and Technology Relations with Japan, U.S. Office of International Affairs (1997)Google Scholar
and , ed., The Economic Sociology of Capitalism (Princeton University Press, 2005)
, “Beyond Guanxi: Network Contingencies in Taiwanese Business Groups,” Organisational Studies 27, no. 4 (2005): 461–89.CrossRefGoogle Scholar
, Information, Incentives and Bargaining in the Japanese Economy (Cambridge University Press, 1988)CrossRefGoogle Scholar
and , Fragmentation: New Production Patterns in World Economy (Oxford University Press, 2001)Google Scholar
and , “Directly-Deliberative Polyarchy,” European Law Journal 3, no. 4 (1997): 313–42.CrossRefGoogle Scholar
and , The New Global Supply Base-New Challenges for Local Suppliers in East Asia, IPC Working Paper Series (October 2003)
, Perspectives and Approaches Corporate Governance in the 21st Century: Japanese Gradual Transformation (Edward Elgar, 2008), 21–52.CrossRefGoogle Scholar
, “Learning from Toyota’s Troubles: The Debate on Board Oversight, Board Structure, and Director Independence in Japan,” Journal of Japanese Law 15, no. 30 (2010): 67–87.Google Scholar
, , and , “United States, Japanese, and Korean FDI and Intra-East Asian Trade,” Asian Economic Papers 9, no. 3 (2010): 129–54.CrossRefGoogle Scholar
and , “National Structures and Multinational Corporate Behaviour,” International Organization 51, no. 1 (1997): 1–30.CrossRefGoogle Scholar
, Sino-Japanese Relations: Interaction, Logic and Transformation (Woodrow Wilson Center Press, 2006), 57–63.Google Scholar
, et al., “Globalizing Regional Development: A Global Production Networks Perspective,” Transactions of the Institute of British Geographers 29, no. 4 (2004): 468–84.CrossRefGoogle Scholar
, “Regional Development and the Competitive Dynamics of Global Production Networks: An East Asian Perspective,” Regional Studies 43, no. 3 (2009): 325–51.CrossRefGoogle Scholar
, , and , “Spatial Distribution of Industrial Production: A Comparison of East Asia and Europe,” The Developing Economies 49, no. 4 (December 2011): 363–81.CrossRefGoogle Scholar
and , “How Network Strategies and Institutional Transitions Evolve,” Asia Pacific Journal of Management 22 (2005): 321–36.CrossRefGoogle Scholar
and , “Intra-regional Trade Key to Asia’s Export Boom,” IMF Survey Magazine (2008)
, “Asian Economic Integration and Cooperation – Challenges and Way Forward,” East Asia Forum (2010)
and , “China Reshapes the East Asian Production Network,” China Economist 4. no. 2 (2009)Google Scholar
, , and , “United States, Japanese, and Korean FDI and Intra-East Asian Trade,” Asian Economic Papers 9, no. 3 (2010): 129–54.CrossRefGoogle Scholar
and , Japan’s Network Economy: Structure, Persistence, and Change (Cambridge University Press, 2004), 295–300.CrossRefGoogle Scholar
and , Japan’s Network Economy: Structure, Persistence, and Change (Cambridge University Press, 2004).CrossRefGoogle Scholar
and , Group Agent: The Possibility of Design and the Status of Corporate Agents (Oxford University Press, 2011), 131.CrossRefGoogle Scholar
, “How Chrysler Created an American Keiretsu,” Harvard Business Review 74, no. 4 (July–August, 1996): 42–52Google Scholar
, “The Network Architecture of Supply Chains,” in Networks: Legal Issues of Multilateral Co-Operation, ed. and (Hart Publishing, 2009), 187–210.Google Scholar
, “Hybridization of Japanese Production Systems in North America, Newly Industrialized Economies, South East Asia and Europe: Contrasting Configurations,” in Between Imitation and Innovation, ed. , , , and (Oxford University Press, 1997), 216–30Google Scholar
, “The Japanese Production System: The Process of Adaption to Natural Settings,” in States Against Markets: The Limits of Globalization, ed. and (Routledge, 1996), 136–54.Google Scholar
, , and , Rules and Networks: The Legal Culture of Global Business Transactions (Hart Publishing, 2001), 159–88.Google Scholar
, “Legitimacy and Privatization of Environmental Governance: How Non-state Market Driven Systems Gain Market Recognition,” Governance 15, no. 502 (2002): 503–29.CrossRefGoogle Scholar
and , How the iPhone Widens the United States Trade Deficit with the People’s Republic of China, Asian Development Bank Institute, Working Paper Series, No. 257 (December 2010)
, “The Effects of Knowledge Attribute, Alliance, Characteristics, and Absorptive Capacity on Knowledge Transfer Performance,” R&D Management 34, no. 3 (2004): 311–21Google Scholar
, “Intermediating Knowledge Exchange between Universities and Businesses,” Research Policy 37, no. 8 (2008): 1167–74.CrossRefGoogle Scholar
and , “Promoting Relationship Learning,” Journal of Marketing 67 (2003): 80–95, at 84.CrossRefGoogle Scholar
, , and , “The Value of Relational Learning in Global Buyer-Supplier Exchanges,” Strategic Management Journal 32, no. 10 (2011): 1061, 1064–5CrossRefGoogle Scholar
and , Managing Across Borders: A Transnational Solution (Harvard Business School Press, 1998).Google Scholar
and , “The Performance Implications of Strategic Fit of Relational Norm Governance Strategies in Global Supply Chain Relationships,” Journal of International Business Studies 36 (2005): 254–69CrossRefGoogle Scholar
, “Kinship Networks and Entrepreneurs in China’s Transitional Economy,” American Journal of Sociology 109, no. 5 (2004): 1045–74.CrossRefGoogle Scholar
and , “Promoting Relationship Learning,” Journal of Marketing 67 (2003): 80–95, at 83.CrossRefGoogle Scholar
and , “Multinational Organization Context: Implications for Team Learning and Performance,” Academy of Management Journal 49, no. 3 (2006): 501–18.CrossRefGoogle Scholar
, , and , “Host-country Absorption of Technology: Evidence from Automotive Supply Networks in Eastern Europe,” Industry and Innovation 10, no. 4 (2003): 415–32, at 418–23.CrossRefGoogle Scholar
and , “Learning New Technologies by Small and Medium Enterprises in Developing Countries,” Technovation 26 (2006): 220–31.CrossRefGoogle Scholar
and , “Knowledge Flows within Multinational Corporations,” Strategic Management Journal 21, no. 4 (2000): 473–96.3.0.CO;2-I>CrossRefGoogle Scholar
, et al., “The Value of Relational Learning in Global Buyer-Supplier Exchanges,” 1066; Clive Lawson and Edward Lorenz, “Collective Learning, Tacit Knowledge and Regional Innovative Capacity,” Regional Studies 33, no. 4 (1999): 305–17, at 309.Google Scholar
, Information, Incentives and Bargaining in the Japanese Economy (Cambridge University Press, 1988)CrossRefGoogle Scholar
, “Inside Management and Board Reform: For Whose Benefits?,” in Corporate Governance in Japan Institutional Change and Organizational Diversity, ed. , , and (Oxford University Press, 2007), 370–98.Google Scholar
Author unknown, “Intel talks about investment environment in Vietnam” [Intel nói về môi trường đầu tư Việt Nam], Vietnam Economic Times, January 24, 2008.
VnExpress, “A state agency signs a commitment refusing bribes” [Một cơ quan nhà nước ký cam kết từ chối việc hối lộ], Vietnamnet Bridge, September 7, 2007
and , “Interfirm Relationships and Informal Credit in Vietnam,” Quarterly Journal of Economics 114, no. 4 (1999): 1285CrossRefGoogle Scholar
, “Testing the Limits to the ‘Rule of Law’: Commercial Regulation in Vietnam,” Journal of Comparative Asian Development 12, no. 2 (2008): 245–72.Google Scholar
, Law and Colonial Cultures: Legal Regimes in World History 1400–1900 (Cambridge University Press, 2002), 3–9.Google Scholar
, “Cross-Cultural Code-Switching: The Psychological Challenges of Adapting Behavior in Foreign Cultural Interactions,” Academy of Management Review 32, no. 2 (2007): 622–40CrossRefGoogle Scholar
and , “Boundary Work: An Interpretive Ethnographic Perspective on Negotiating and Leveraging Cross-Cultural Identity,” Journal of International Business Studies 42 (2011): 629–53.CrossRefGoogle Scholar
and , “Dynamic Flexibility and Sectoral Governance in the Thai Auto Industry: The Enclave Problem,” in Economic Governance and the Challenge of Flexibility in East Asia, ed. , , and (Rowman and Littlefield, 2001), 107–36.Google Scholar
, “Exploring the Role of Legitimacy and Identity in Framing Responses to Global Legal Reforms in Socialist Transforming Asia,” Wisconsin International Law Journal 29, no. 2 (2011): 101–46.Google Scholar
- 2
- Cited by