Sociology

Transnational economic linkages, the state, and dependent development in south korea, 1966—1988: a time-series analysis

Document Type

Article

Abstract

This article uses time-series analysis to examine development patterns in South Korea, a country that has realized dramatic economic growth over the last several decades. We show that (1) arguments associated with classical dependency and dependent development theory must be modified substantially when applied to Korea; (2) the Korean state has been an important actor in the country’s economic success, closely regulating direct foreign investment but strongly encouraging foreign trade; and (3) foreign trade and foreign loans have facilitated economic growth throughout the Korean economy, whereas the capital outflow associated with direct foreign investment continues to impede expansion. Overall, we conclude that Korea has experienced a form of “dependent development” that relies heavily on international trade (especially exports), a strong national state, and local business. This pattern is in contrast to Latin American dependent development, which places a heavy emphasis on direct foreign investment. © 1993 The University of North Carolina Press.

Publication Title

Social Forces

Publication Date

1-1993

Volume

72

Issue

2

First Page

315

Last Page

345

ISSN

0037-7732

DOI

10.1093/sf/72.2.315

Keywords

South Korea, economic growth, economy, dependent development

Share

COinS