Should-Read: Randall Morck and Bernard Yeung: East Asian Financial and Economic Development

Should-Read: Randall Morck and Bernard Yeung: East Asian Financial and Economic Development: “Japan, an isolated, backward country in the 1860s, industrialized rapidly to become a major industrial power by the 1930s… http://www.nber.org/papers/w23845

…South Korea, among the world’s poorest countries in the 1960s, joined the ranks of First World economies in little over a single generation. China now seems poised to follow a similar trajectory. All three cases highlight the importance of marginalized traditional elites, intensive early investment in education, a degree of economic openness, free markets, equity financing, early-stage coordination of firms in diverse industries via arrangements such as business groups, and political institutions capable of curbing the power of families grown wealthy in early-stage rapid development to make way for prosperity sustained by efficient resource allocation to high-productivity firms…