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Manufacturing Competitiveness in Asia

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Manufacturing Competitiveness in Asia Manufacturing Competitiveness in Asia There are competing theories to explain the reasons behind the international competitiveness of manufacturing in Asia. Analysing these different theories will bring important lessons, not just for Asia, but for developing economies the world over. This lucid book studies industries and firms in East Asia and examines the major determinants of their economic performance. With contributions from leading thinkers, including Ha-Joon Chang and Rajah Rasiah, the book covers such themes as: • industrial policy and East Asia • Taiwan’s information technology industry • the role of the government in technological capability building. Manufacturing Competitiveness in Asia touches on many important themes and issues and as such will be of great interest to students, academics and policy- makers involved in industrial economics, international trade and Asian studies. Jomo K.S. is Professor in the Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, Malaysia. Another of his books, Southeast Asian Paper Tigers? is also published by RoutledgeCurzon, in 2003. RoutledgeCurzon Studies in the Growth Economies of Asia 1The Changing Capital Markets of 14 Chinese Firms and Technology in East Asia the Reform Era Edited by Ky Cao Yizheng Shi 2 Financial Reform in China 15 Japanese Views on Economic Edited by On Kit Tam Development 3 Women and Industrialization in Asia Diverse paths to the market Edited by Susan Horton Kenichi Ohno and Izumi Ohno 4 Japan’s Trade Policy 16 Technological Capabilities and Action or reaction? Export Success in Asia Yumiko Mikanagi Edited by Dieter Ernst, Tom Ganiatsos and Lynn Mytelka 5 The Japanese Election System Three analytical perspectives 17 Trade and Investment in China Junichiro Wada The European experience Edited by Roger Strange, Jim Slater and 6 The Economics of the Latecomers Limin Wang Catching-up, technology transfer and institutions in Germany, Japan and 18 Technology and Innovation in Japan South Korea Policy and management for the 21st Jang-Sup Shin century Edited by Martin Hemmert and 7 Industrialization in Malaysia Christian Oberländer Import substitution and infant industry performance 19 Trade Policy Issues in Asian Rokiah Alavi Development Prema-chandra Athukorala 8 Economic Development in Twentieth Century East Asia 20 Economic Integration in the Asia The international context Pacific Region Edited by Aiko Ikeo Ippei Yamazawa 9 The Politics of Economic 21Japan’s War Economy Development in Indonesia Edited by Erich Pauer Contending perspectives 22 Industrial Technology Development Edited by Ian Chalmers and Vedi Hadiz in Malaysia 10 Studies in the Economic History of Industry and firm studies the Pacific Rim Edited by Jomo K.S., Greg Felker and Edited by Sally M. Miller, A.J.H. Rajah Rasiah Latham and Dennis O. Flynn 23 Technology, Competitiveness and 11 Workers and the State in New Order the State Indonesia Malaysia’s industrial technology policies Vedi R. Hadiz Edited by Jomo K.S. and Greg Felker 12 The Japanese Foreign Exchange 24 Corporatism and Korean Capitalism Market Edited by Dennis L. McNamara Beate Reszat 25 Japanese Science 13 Exchange Rate Policies in Emerging Samuel Coleman Asian Countries 26 Capital and Labour in Japan Edited by Stefan Collignon, Jean The functions of two factor markets Pisani-Ferry and Yung Chul Park Toshiaki Tachibanaki and Atsuhiro Taki 27 Asia Pacific Dynamism 1550–2000 38 Developmentalism and Dependency Edited by A.J.H. Latham and Heita in Southeast Asia Kawakatsu The case of the automotive industry 28 The Political Economy of Jason P. Abbott Development and Environment in 39 Law and Labour Market Regulation Korea in East Asia Jae-Yong Chung and Richard J. Kirkby Edited by Sean Cooney, Tim Lindsey, 29 Japanese Economics and Economists Richard Mitchell and Ying Zhu since 1945 40 The Economy of the Philippines Edited by Aiko Ikeo Elites, inequalities and economic 30 China’s Entry into the World Trade restructuring Organisation Peter Krinks Edited by Peter Drysdale and Ligang Song 41Private Enterprise in China 31Hong Kong as an International Edited by Ross Gamaut and Ligang Financial Centre Song Emergence and development 42 The Vietnamese Economy 1945–1965 Awakening the dormant dragon Catherine R. Schenk Edited by Binh Tran-Nam and Chi Do 32 Impediments to Trade in Services Pham Measurement and policy implication 43 Restructuring Korea Inc. Edited by Christoper Findlay and Tony Jang-Sup Shin and Ha-Joon Chang Warren 44 Development and Structural Change 33 The Japanese Industrial Economy in the Asia-Pacific Late development and cultural Globalising miracles or end of a causation model? Ian Inkster Edited by Martin Andersson and Christer 34 China and the Long March to Global Gunnarsson Trade 45 State Collaboration and The accession of China to the World Development Strategies in China Trade Organization Alexius Pereira Edited by Alan S. Alexandroff, Sylvia 46 Capital and Knowledge in Asia Ostry and Rafael Gomez Changing power relations 35 Capitalist Development and Edited by Heidi Dahles and Otto van den Economism in East Asia Muijzenberg The rise of Hong Kong, Singapore, 47 Southeast Asian Paper Tigers? Taiwan, and South Korea From miracle to debacle and Kui-Wai Li beyond 36 Women and Work in Globalizing Edited by Jomo K.S. Asia 48 Manufacturing Competitiveness in Edited by Dong-Sook S. Gills and Nicola Asia Piper How internationally competitive 37 Financial Markets and Policies in national firms and industries East Asia developed in East Asia Gordon de Brouwer Edited by Jomo K.S. Manufacturing Competitiveness in Asia How internationally competitive national firms and industries developed in East Asia Edited by Jomo K. S. I~ ~?io~:!;n~~;up LONDON AND NEW YORK First published 2003 by RoutledgeCurzon Published 2017 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN 711 Third Avenue, New York, NY 10017, USA Routledge is an imprint of the Taylor & Francis Group, an informa business Copyright © 2003 Selection and editorial matter, Jomo K. S.; individual chapters, the contributors Typeset in Goudy by Keystroke, Jacaranda Lodge, Wolverhampton The Open Access version of this book, available at www.tandfebooks.com, h as been made available under a Creative Commons Attribution-Non Commercial- No Derivatives 4.0 license. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Manufacturing competitiveness in Asia: how internationally competitive national firms and industries developed in East Asia/[edited by] Jomo K. S. p. cm. — (RoutledgeCurzon studies in the growth economies of Asia; 47) Includes bibliographical references and index. 1. Manufacturing industries—East Asia. 2. Electronic industries— East Asia. 3. International business enterprises—East Asia. 4. East Asia—Foreign economic relations. 5. Competition, International. I. Jomo K. S. (Jomo Kwame Sundaram) II. Series. HD9736.E18 M36 2003 338.095—dc21 2002036911 ISBN 978-0-415-29922-0 (hbk) Contents Lists of figures and tables ix List of contributors xi Acknowledgements xiii List of abbreviations xv 1 Introduction 1 JOMO K.S. WITH KEN TOGO 2 Industrial policy and East Asia: the miracle, the crisis and the future 18 HA-JOON CHANG 3 Behind POSCO’S success: the role of government in technology capability building 41 PARK EUL YONG 4 Taiwan’s information technology industry 75 WU RONG-I AND TSENG MING-SHEN 5 Industrial policy and the emergence of internationally competitive manufacturing firms in Malaysia 106 JOMO K.S., RAJAH RASIAH, ROKIAH ALAVI AND JAYA GOPAL 6 Economic policy and selective industrial development in Thailand: the Thai gems and jewellery industry and the Siam Cement Group 173 PATCHAREE SIROROS AND WILAIWAN WANNITIKUL WITH MEDHI KRONGKAEW Index 211 Figures and tables Figures 5.1 The case for infant industry protection 135 5.2 Rents and technical improvements 136 Tables 3.1 Capacity additions and plant specifications of POSCO, 1970–92 48–9 3.2 Financial position of POSCO, 1989–95 51 3.3 POSCO’s steel-making efficiency indicators 52 3.4 Performance of major steel companies in the world, 1986 52 3.5 Comparison of production costs, 1993 53 3.6 Selected indicators of technology and competitiveness 54 3.7 Comparison of steel product quality and process technology 64 3.8 Research and development (R&D) investment 65 4.1 Taiwan’s economic growth rate 77 4.2 Structural change in Taiwan 78 4.3 Structural change of the manufacturing sector in Taiwan 81 4.4 Taiwan’s top five export products 83 4.5 Status of Taiwan’s top-ranking computer products, 1996 85 4.6 Major information technology (IT) producers, 1994–5 86 4.7 World’s top ten PC suppliers, 1996 86 4.8 Output growth of Taiwan’s leading computer products, 1995–7 87 4.9 HSIP: approved investments, 1981–95 94 4.10 HSIP: R&D investments of Park-based enterprises, 1994 95 4.11 HSIP: status of high-tech industry, 1995 96 5.1 Eng Hardware: evolution of technology and markets, 1976–2001 119 5.2 Main activities of Uniphone and Sapura Telecommunications, 1995 125 5.3 Proton: share-ownership structure, September 1995 133 5.4 Proton: work-force structure, 1989–95 133 5.5 Proton: sales and exports, 1985–95 134 5.6 Proton: technology transfer agreements, 1995 140 6.1 Thailand: export value of gems and jewellery, 1981–2000 183 6.2 Siam Cement Group performance, 1997–2000 204 Contributors Rokiah Alavi (PhD, East Anglia) is Associate Professor in the Kulliyah of Economics and Management Sciences, International Islamic University (Malaysia), Kuala Lumpur, Malaysia. Ha-Joon Chang (PhD, Cambridge) is Lecturer in the Faculty of Economics and Politics, University of Cambridge. Jaya Gopal (PhD, Imperial College) is a Researcher at the Palm Oil Research Institute of Malaysia (PORIM) in Bangi, Selangor, Malaysia. Jomo K.S. (PhD, Harvard) is Professor in the Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, Malaysia.
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