Liberalisation and Industrial Development in the Third World: A Comparison of the Indian and South Korean Engineering Industries

by Steffan Jacobsson

"This book is a good addition to the literature as it brings cut a detailed microlevel comparative analysis of the industrialization experiences of the two countries. This could provide certain useful insights into what went wrong with Indian policy at the microlevel and also what could be the role of industrial policy in the context of the recent economic reforms.... The authors have chosen four engineering industries for a detailed comparative case-study.... The choice of industries is quite appropriate.... This detailed and painstaking study of the process of acquisition and maturation of firms in these industries brings out some very useful conclusions." --International Journal of Development Banking "This is an insightful book with a number of refreshing characteristics. First, it provides a simple non-technical survey of a broad range of literature on the infant industry argument for protection. Second, it uses evidence from case studies to draw a lot of insightful policy prescriptions, which are very relevant in the world today. Third, the book will be of interest to a varied audience ranging from students to specialists carrying on research in industrial economics." --The Journal of Entrepreneurship "A reading of the book is suggested to enhance our learning about the role of government policy in preparing firms for international competitiveness and about a contemporary economy that has seemingly done well in similar industries as well as for a comprehensive understanding of competitiveness as seen in the backdrop of an overlap of the concepts of domestic entry and international entry. The book also provides exhaustive case studies of the engineering industry, machining centres, hydraulic excavators, integrated circuits, and an enriching comparison of evolution of these industries in Korea and India." --Vikalpa "A very well researched and documented study." --Asian Economic Review How does industrial policy in third world nations relate to the role of liberalization in improving industrial performance? This is the central question addressed in this timely, informative study. Using unique firm-level data from the engineering industries in India and South Korea, this lucid study charts the evolution of firms and industries during the liberalization process which took place in both countries during the 1980s. After a detailed description of the changing policy frameworks in both nations, four extensive case studies are presented. These case studies are blended with the results of a number of other case studies to yield an analysis of a variety of phenomena such as the nature of infancy, the evolution of entry barriers to international industry, and the role of previous policy regimes in the accumulation of competitive capabilities. Owing to its unique combination of management science, industrial economics, and development economics, this book will interest a broad range of readers, including economists, political scientists, management experts, and industrialists.

253 pages, Hardcover

First published November 30, 1994