Abstract
Most analysts of the Korean scene concur that the outward-oriented development strategy and export promotion are integrally associated with its phenomenal economic growth and rapid industrialisation. Before the launch of this strategy Korea could not take advantage of gains from trade in the Heckscher-Ohlinian sense because of significant factor and product market distortions, and its comparative advantage in labour intensive manufactures remained merely a potential one. However once it came upon the right strategy, Korea made successful use of trade policy to determine the pace and direction of its industrialisation. This strategy also stimulated Korea’s expansion into newer and more modern lines of industrial activity. Its early export success was adequately supported by the paradigm of static comparative advantage, whereas the dynamic comparative advantage was seen more in operation during the later phases.
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Notes and References
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© 1992 Dilip K. Das
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Das, D.K. (1992). Outward-Oriented Industrialisation Strategy. In: Korean Economic Dynamism. Palgrave Macmillan, London. https://doi.org/10.1057/9780230373853_3
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DOI: https://doi.org/10.1057/9780230373853_3
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