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Title: |
Entrepreneurial Development in Late
Industrialization: A Comparative Analysis |
| Author: |
Yoon, Chang-Ho |
| Author
Affiliation: |
Korea U |
| Source: |
International Economic Journal, Summer 1999, v. 13, no. 2, pp. 1-20 |
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Publication Date: |
Summer 1999 |
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Abstract: |
The paper examines the differences in
entrepreneurial responses that arise from the different historical
backgrounds and transactional efficiency of the market. Beginning from a
brief survey of the comparative study of early privatization policies
and industrial organizations between Korea and Taiwan, we examine
formation of entrepreneurship in a general equilibrium framework with
fixed set-up costs. We show that as the fixed set-up costs increase, the
number of active entrepreneurs decreases, while the remaining
risk-neutral entrepreneurs adopt riskier technologies and increase the
expected level of employment. By examining industry dynamics, we explain
why the growth pattern of some newly industrializing economies like
Korea shows increasing volatility over the sustained period of time. |
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