Capital Account Policy in South Korea: The Informal Residues of the Developmental State
This paper analyzes the political dynamics of capital account policy in South Korea. The first part is devoted to the historical evolution of capital account policy from the 1960s to the present day. It highlights the path of substantial financial opening that began in the early 1990s with two disti...
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| Format: | Article |
| Language: | English |
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Universidad de los Andes
2015-04-01
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| Series: | Colombia Internacional |
| Subjects: | |
| Online Access: | http://colombiainternacional.uniandes.edu.co/view.php/9213/index.php?id=9213 |
| _version_ | 1811240456599633920 |
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| author | Ralf J. Leiteritz |
| author_facet | Ralf J. Leiteritz |
| author_sort | Ralf J. Leiteritz |
| collection | DOAJ |
| description | This paper analyzes the political dynamics of capital account policy in South Korea. The first part is devoted to the historical evolution of capital account policy from the 1960s to the present day. It highlights the path of substantial financial opening that began in the early 1990s with two distinct waves of capital account liberalization before and after the Asian financial crisis of 1997-1998. The second part of the paper aims to detect the political origins of why capital account liberalization has not been complete and sustained. It locates them at the level of domestic informal institutions: first, the ideational legacy of the previous developmental state model – economic nationalism – that was predicated upon substantial barriers to international capital movements. Second, the political power of the export-oriented sector, namely of large conglomerates, that prefer exchange-rate stability and thus restrictions on capital inflows. This paper offers a heuristic argument based on a single case study which needs to be subjected to further empirical testing. |
| first_indexed | 2024-04-12T13:19:37Z |
| format | Article |
| id | doaj.art-61bf4fd49aa44eec9921ac88758d971f |
| institution | Directory Open Access Journal |
| issn | 0121-5612 1900-6004 |
| language | English |
| last_indexed | 2024-04-12T13:19:37Z |
| publishDate | 2015-04-01 |
| publisher | Universidad de los Andes |
| record_format | Article |
| series | Colombia Internacional |
| spelling | doaj.art-61bf4fd49aa44eec9921ac88758d971f2022-12-22T03:31:31ZengUniversidad de los AndesColombia Internacional0121-56121900-60042015-04-018323526510.7440/colombiaint83.2015.09Capital Account Policy in South Korea: The Informal Residues of the Developmental StateRalf J. Leiteritz0Universidad del Rosario (Colombia)This paper analyzes the political dynamics of capital account policy in South Korea. The first part is devoted to the historical evolution of capital account policy from the 1960s to the present day. It highlights the path of substantial financial opening that began in the early 1990s with two distinct waves of capital account liberalization before and after the Asian financial crisis of 1997-1998. The second part of the paper aims to detect the political origins of why capital account liberalization has not been complete and sustained. It locates them at the level of domestic informal institutions: first, the ideational legacy of the previous developmental state model – economic nationalism – that was predicated upon substantial barriers to international capital movements. Second, the political power of the export-oriented sector, namely of large conglomerates, that prefer exchange-rate stability and thus restrictions on capital inflows. This paper offers a heuristic argument based on a single case study which needs to be subjected to further empirical testing.http://colombiainternacional.uniandes.edu.co/view.php/9213/index.php?id=9213South Koreacapital account policynational economic identityinternational political economy |
| spellingShingle | Ralf J. Leiteritz Capital Account Policy in South Korea: The Informal Residues of the Developmental State Colombia Internacional South Korea capital account policy national economic identity international political economy |
| title | Capital Account Policy in South Korea: The Informal Residues of the Developmental State |
| title_full | Capital Account Policy in South Korea: The Informal Residues of the Developmental State |
| title_fullStr | Capital Account Policy in South Korea: The Informal Residues of the Developmental State |
| title_full_unstemmed | Capital Account Policy in South Korea: The Informal Residues of the Developmental State |
| title_short | Capital Account Policy in South Korea: The Informal Residues of the Developmental State |
| title_sort | capital account policy in south korea the informal residues of the developmental state |
| topic | South Korea capital account policy national economic identity international political economy |
| url | http://colombiainternacional.uniandes.edu.co/view.php/9213/index.php?id=9213 |
| work_keys_str_mv | AT ralfjleiteritz capitalaccountpolicyinsouthkoreatheinformalresiduesofthedevelopmentalstate |