ECN 802 Lecture Notes - Lecture 2: International Monetary Fund, Cross Ownership, Import Substitution Industrialization
17 Jul 2014
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It has a young population, high domestic savings rate. South korea (similar to japan)cross ownership structure. Situations of high leverage for example; 65% equity and 35% debt or 60% equity and. Asian countries were able to withstand greater reliance (a situation which is opposite to high leverage) through cross-ownership. In our region the government became an active partner. Support to domestic corporation to move in that direction. Support meant research, special loans, subsidies and tax breaks. Growth rates: s. korea 6. 9%, thailand 7. 4%, malaysia 7. 4%, indonesia 13%, hong. Kong, singapore, taiwan, japan, philippines (china and india are not included) Crisis spreads to s. korea, malaysia, philippines, india, hong kong, singapore. Although in the growth phase (1980 1997) have de-regulated and made them investor friendly from a foreign investor point of view. Japan wanted to provide jobs for a lifetime. Bailout package by the imf (international monetary fund) Allow banks to merge or buy them.
