Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98284
Authors: 
Ranis, Gustav
Year of Publication: 
1997
Series/Report no.: 
Center Discussion Paper 786
Abstract: 
This paper examines the causes of Taiwan's exceptional economic performance, focusing on the influence of organizational and policy choices and how Taiwan's example differs from those of more typical less-developed countries. After briefly citing cultural factors as proposed by his late colleague John Fei, Ranis proceeds to explore the issues of organic nationalism, natural resource endowment, access to foreign capital and other political factors that have produced such economic success. The author demonstrates how Taiwan's unique combination of strong organic nationalism, meager natural resources and limited access to foreign capital helped curb the Extended Dutch Disease phenomenon endemic in LDCs. In addition, the government's non-oscillatory, relatively laissez-faire fiscal and monetary policies, encouragement of technological innovation, plus generous educational, R&D and infrastructural expenditures have contributed to low rates of inflation and high rates of GDP growth. The paper finally suggests a positive correlation between democracy and economic development.
Subjects: 
Economic Development
LDC
Political Economy
Taiwan
Extended Dutch Disease
Democracy
JEL: 
O10
O11
O50
P16
Document Type: 
Working Paper

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