The Institutional Foundations of East Asian Economic Development

KENNETH ARROW Professor of Economics, Stanford University, USA ARSENIO M. BALISACAN Professor of Economics, University of the Philippines ABHIJIT BANERJEE Professor of Economics, Massachusetts University of Technology, Cambridge, USA KAUSHIK BASU Professor of Economics, Cornell University, Ithaca, USA MICHAEL BRUNO Professor of Economics, Hebrew University of Jerusalem, Israel TAIN-JY CHEN Professor of Economics, National Taiwan University, Taipeh, Taiwan YOON JE CHO Ministry of Finance and Economy, Republic of Korea VITTORIO CORBO Professor of Economics, Catholic University of Chile, Santiago, Chile PARTHA DASGUPTA Professor of Economics, University of Cambridge, UK JACQUES DREZE Professor of Economics, Core, Louvain-la-Neuve, Belgium DAVID FEENY Professor of Economics, McMaster University, Hamilton, Ontario, Canada AVNER GRIEF Professor of Economics, Stanford University, USA THOMAS HELLMANN Professor of Economics, Stanford University, USA TAKENORI INOKI Professor of Economics, OsakaUniversity MOTOSHIGE ITOH Professor of Economics, University of Tokyo, Japan KAZUO KOIKE Professor of Economics, Hosei University ANNE O. KRUEGER Professor of Economics, Stanford University, USA JONG-WHA LEE Professor of Economics, Korea University, Seoul, Korea JUSTIN YIFU LIN Professor of Economics, Beijing University, china VALERY MAKAROV Professor of Economics, Russian Academy of Sciences, Moscow KEVIN MURDOCK Professor of Economics, Stanford University, USA DOUGLASS C. NORHT Professor of Economics, Washington University, St Louis, USA TETSUJI OKASAKI Professor of Economics, University of Tokyo, Japan MASAHIRO OKUNO-FUJIWARA Professor of Economics, University of Tokyo, Japan KEIJIRO OTSUKA Professor of Economics, University of Tokyo, Japan MARI PANGESTU Doctor, Centre for Strategic and International Studies, Jakarta, Indonesia JEAN-PHILIPPE PLATTEAU Professor of Economics, University of Namur, Belgium GUSTAV RANIS Professor of Economics, Yale University, USA DANI RODRIK Professor of Economics, Harvard University, USA ANDREW L.T. SHENG Hong Kong Monetary Authority, Hong Kong AMMAR SIAMWALLA Thailand Development Institute, Bangkok. Thailand JOSEPH STIGLITZ Professor of Economics, Stanford University, USA JURO TERANISHI Professor of Economics, Hitotubashi University, Japan ERIK THORBECKE Professor of Economics, Cornell University, Ithaca, USA SHUJIRO URATA Professor of Economics, Waseda University, Japan.

The International Economic Association Acknowledgements Foreword by J. Dr� Abbreviations List of Contributors Introduction; Yujiro Hayami and Masahiko Aoki PART I: SETTING A STAGE Toward an East Asian Model of Economic Development; Y. Hayami ; Comment; P. Dasgupta The Place of Institutions in the Economy: A Theoretical Perspective; K. Arrow A West Asian's View of East Asian Development; M. Bruno PART II: DEVELOPMENT STRATEGY AND MACROECONOMICS INSTITUTIONS TFPG Controversies, Institutions and Economic Performance; D.Rodrik ; Comment; T. Chen The Institutional Foundation of Macroeconomics Stability: Indonesia Versus Nigeria ; E. Thorbecke ; Comment; M. Pangestu Resource Abundance and Economic Development in Newly-Industrialised Economies: East Asia Versus Latin America; F. Kimura and H. Kohama ; Comment; G. Ranis Contrasts in Transition to Market-Oriented Economies: India and Korea; A. Krueger ; Comment; K. Basu Transition to Market-Oriented Economies: China Versus Eastern Europe and Russia; J. Lin ; Comment; B. Makarov PART III: INSTITUTIONAL ARRANGEMENTS IN STATE-ECONOMY INTERFACE Financial Restraint and the Market Enhancing View; T.Hellmann, K. Murdock and J. Stiglitz ; Comment; A. Sheng Industrial Interests Versus Class Interests: Conflicts Over Income Distribution in the Economic Development of Japan and Brazil; J. Teranishi ; Comment; V. Corbo Upgrading Technological Capabilities of Small and Medium Enterprise: Private Support in the Japanese and Korean Auto Parts Industries; M. Itoh and S. Urata ; Comment; J. Lee PART IV: PROPERTY RIGHTS, COMMUNITY NORMS AND ECONOMIC ORGANISATIONS Resource Endowments and Agricultural Development: Africa Versus Asia; J. Platteau and Y. Hayami ; Comment; P. Dasgupta Thailand Versus Japan: Why Was Japan First?; D. Feeny Rural Industrialisation in East Asia; K. Otsuka ; Comment; A. Banerjee Evolution of Economic Systems: The Case of Japan; T. Okasaki and M. Okuno-Fujiwara ; Comment; A. Grief CONCLUSION The Role of Community Normsand Government in East Asian Rural-Inclusive Development and Institution Building; M. Aoki The Institutional Foundations of East Asian Development: A Summary Evaluation; D. North Index of Names Subject Index