Varieties of Capitalist Development: The Political Determinants of Economic Governance Systems Open Access

Moore, Joel David (2011)

Permanent URL: https://etd.library.emory.edu/concern/etds/41687h652?locale=en
Published

Abstract

This thesis uses a typological framework to explain why the core functions of economic activity vary so significantly from state to state. I explain this variation by linking large structural factors to microlevel decisions. The typological framework I employ examines the interaction between levels of systemic vulnerability faced by governments on the one hand and the number of veto players on the other. I hypothesize that states without the institutionalized constraints embodied in multiple veto player governments will only develop the broadly-targeted policy environment necessary for coordinative economic governance institutions when sufficiently high levels of vulnerability serve as an alternative form of constraint. Additionally, I hypothesize that states with very many veto player governments will be unable to overcome the tendency towards the sorts of particularistic policies that lead to hierarchical economic governance institutions, regardless of the level of vulnerability. I use this framework to account for variation in economic governance institutions in Thailand, Malaysia, and Singapore.

Table of Contents

Contents

1 Introduction 1

1.1 Puzzle and Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.2 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2 Literature Review 11

2.1 Varieties of capitalism . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.1.1 Single, Non-Alternating Veto Player Governments . . . . . . . 15

2.1.2 Very Many Veto Player Governments . . . . . . . . . . . . . . 16

2.2 Insights from the Development Literature . . . . . . . . . . . . . . . . 18

2.3 Synthesis: Veto Players, Corruption, and Coordination . . . . . . . . 22

2.4 Research Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

2.5 Variables and Indicators . . . . . . . . . . . . . . . . . . . . . . . . . 35

2.5.1 Dependent Variables: Economic Governance Institutions . . . 35

2.5.2 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 42

2.5.3 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 45

3 Thailand 49

3.1 Military Rule (1957-1973) . . . . . . . . . . . . . . . . . . . . . . . . 50

3.1.1 Independent variables . . . . . . . . . . . . . . . . . . . . . . 50

3.1.2 Systemic Vulnerability . . . . . . . . . . . . . . . . . . . . . . 53

3.1.3 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 54

3.1.4 Economic Governance Institutions . . . . . . . . . . . . . . . . 58

3.1.5 Electrical/Electronic Industry . . . . . . . . . . . . . . . . . . 65

3.2 Instability (1973-1979) . . . . . . . . . . . . . . . . . . . . . . . . . . 69

3.2.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 69

3.2.2 Policy environment . . . . . . . . . . . . . . . . . . . . . . . . 73

3.2.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 75

3.2.4 Electrical/Electronics Industry . . . . . . . . . . . . . . . . . . 79

3.3 Semi-Democracy (1979-1989) . . . . . . . . . . . . . . . . . . . . . . 82

3.3.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 82

3.3.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 86

3.3.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 89

3.3.4 Electrical/Electronic Industry . . . . . . . . . . . . . . . . . . 93

3.4 Coalitional Governments (1989-1997) . . . . . . . . . . . . . . . . . . 100

3.4.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 100

3.4.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 103

3.4.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 109

3.4.4 Electrical/Electronic Industry . . . . . . . . . . . . . . . . . . 113

3.5 Post-Crisis (1997-2001) . . . . . . . . . . . . . . . . . . . . . . . . . . 117

3.5.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 117

3.5.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 118

3.5.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 121

3.5.4 Electrical/Electronic Industry . . . . . . . . . . . . . . . . . . 124

3.6 Single Party Rule (2001-2006) . . . . . . . . . . . . . . . . . . . . . . 127

3.6.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 127

3.6.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 130

3.6.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 132

3.6.4 Electrical/Electronic Industry . . . . . . . . . . . . . . . . . . 135

3.7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

4 Malaysia 144

4.1 Malaysia (1957-1969) . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

4.1.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 146

4.1.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 152

4.1.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 153

4.1.4 Electrical/Electronics Industries . . . . . . . . . . . . . . . . . 156

4.2 Malaysia (1969-2008) . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

4.2.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 158

4.2.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 161

4.2.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 168

4.2.4 Electrical/Electronics Industries . . . . . . . . . . . . . . . . . 175

4.3 Penang: 1969-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180

4.3.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . 180

4.3.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . 184

4.3.3 Economic Governance Institutions . . . . . . . . . . . . . . . . 186

4.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

5 Singapore 197

5.1 Independent Variables . . . . . . . . . . . . . . . . . . . . . . . . . . 197

5.1.1 Systemic Vulnerability . . . . . . . . . . . . . . . . . . . . . . 197

5.1.2 Veto Players . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

5.2 Policy Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

5.3 Economic Governance Institutions . . . . . . . . . . . . . . . . . . . . 204

5.3.1 Corporate Governance . . . . . . . . . . . . . . . . . . . . . . 204

5.3.2 Interfirm Linkage Institutions . . . . . . . . . . . . . . . . . . 208

5.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210

6 Conclusions 212

6.1 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213

6.2 Alternative Arguments . . . . . . . . . . . . . . . . . . . . . . . . . . 219

6.2.1 Sino Capitalism . . . . . . . . . . . . . . . . . . . . . . . . . . 219

6.2.2 Multiethnic Countries . . . . . . . . . . . . . . . . . . . . . . 221

6.2.3 Multinational Corporations and Local Institutions . . . . . . 221

6.2.4 Institutional Malleability . . . . . . . . . . . . . . . . . . . . . 222

6.3 Implications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222

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