Out of Debt-Driven Economic Growth

Abstract

My study shows the burden handling mechanisms of economic crises. The cases in this paper are focused on Korea and Japan at the domestic level. The both countries chose different politic decisions and brought unexpected outcomes through the economic crises. According to macro-economic, economic actors at the domestic level are government, business, and household. It is common to think when states have economic shocks; domestic economic actors have to handle the burden together. There are two ways to handle the burden. One is sharing. The other one is shifting. As OECD data, both of two countries still have a lot of debt since recent crises. However, the kinds of debt seem differences. While most countries are in global economic crises as far, it is more value to study in kind, not in extent degree. My research doesn’t show which country is more succeeded in this world economic atmosphere. Instead, it shows different kinds of burden sharing mechanism form the same problem. The crises’ characters of both countries are not the same but they have similar problem that I found was based on developmental states theory. The one of original characters developmental states is the corrupted bonding relationship between the businesses and banks. It was sine qua non for debt-driven growth. Both countries faced this corrupted bonding relationship as primary problem of crises handling; governments of Korean and Japan started to restructure this relationship, which had been industrial structure before the crises.



Author Information
MyungSun Kim, Ewha Woman University, South Korea

Paper Information
Conference: ACSS2015
Stream: Politics

This paper is part of the ACSS2015 Conference Proceedings (View)
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