Publication

This paper looks at the viability of South Korea's model of industrialization in the wake of the Asian Crisis of 1997. In this respect the paper stresses the neglect of underlying structural weaknesses in the real economy, arguing that the economic structures and institutions that were conducive for Korea's catching-up could not foster the capabilities necessary to guarantee sustained growth. It analyzes how limitations inherent to the Korean model of late industrialization account for a lack of flexibility and truncated upgrading. The author suggests an upgrading from product to technology diversification as one possible option to overcome the situation.