Hostname: page-component-76fb5796d-vfjqv Total loading time: 0 Render date: 2024-04-25T18:59:29.238Z Has data issue: false hasContentIssue false
  • English
  • Français

Coalitional Dynamics, Power Structure and Financial Markets in East Asia

Published online by Cambridge University Press:  22 May 2014

Xiaoke Zhang
Get access Rights & Permissions [Opens in a new window]

Abstract

The main argument to be developed in this article posits that fundamental changes and variations in the financial market structure of East Asian economies have been predicated on the emergence and configuration of the dominant coalitions. The coalitions have been forged by private market agents, economic policymakers and political elites who have developed particular interests in financial market changes as a response to economic and political imperatives both at home and abroad. In East Asia, the dominant coalitions that have borne crucially on regulatory rules and market practices have differed in the policy preferences of key actors in the coalitions and the power structures of these coalitions. It is these differences that have exerted divergent shaping influences on financial market development.

Type
Articles
Information
Government and Opposition , Volume 49 , Issue 3: The Power of Finance: Before and After the Great Financial Crash , July 2014 , pp. 511 - 541
Copyright
Copyright © Government and Opposition Ltd 2014 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

*

Xiaoke Zhang is a Professor at Manchester Business School, the University of Manchester. Contact email: xiaoke.zhang@mbs.ac.uk.

References

Almeida, P. (1989), ‘A Matter of Timing’, Malaysian Business, 16–30 November.Google Scholar
Australian Stock Exchange (2003), International Share Ownership (Sydney: ASX).Google Scholar
Balakrishnan, N. (1989), ‘Divorce Proceeding’, Far Eastern Economic Review, 9 November.Google Scholar
Bank Negara Malaysia (1994), Money and Banking in Malaysia (Kuala Lumpur: Bank Negara Malaysia).Google Scholar
Bank Negara Malaysia (2002), Annual Report (Kuala Lumpur: BNM).Google Scholar
Bank Negara Malaysia (2003), Annual Report (Kuala Lumpur: BNM).Google Scholar
Bank Negara Malaysia (2004), Annual Report (Kuala Lumpur: BNM).Google Scholar
Baum, J. (1991), ‘Creaking Open: Taiwan’s Market Reforms Make Patchy Progress’, Far Eastern Economic Review, 10 December: 72.Google Scholar
Beck, T. and Al-Hussainy, E. (2010), A New Database on Financial Development and Structure (Washington, DC: World Bank).Google Scholar
Carney, R.W. (2010), Contested Capitalism (London: Routledge).Google Scholar
Chen, Y. (2001), ‘The Heavy Medicine of Mergers can Resolve the Financial Crisis’, Tianxia, (Commonwealth), 1 February: 151–155.Google Scholar
Chen, C.-H. (2005), ‘Taiwan’s Burgeoning Budget Deficit’, Asian Survey, 45(3): 383–396.Google Scholar
Chen, N.-K. and Wang, H.-J. (2005), ‘Financial Crisis and the Effects on Bank Credits’, manuscript, Department of Economics, National Taiwan University.Google Scholar
Chin, K.F. and Jomo, K.S. (2001), ‘Financial Reform and Crisis in Malaysia’, in M. Tsurumi (ed.), Financial Big Bang in Asia (Aldershot: Ashgate): 225–249.Google Scholar
Chu, W.-W. (2004), ‘A Re-Examination of Privatisation in the Post-Authoritarian Era’, Social Studies Quarterly, 53: 29–59 (in Chinese).Google Scholar
Chung, K. (2009), ‘Household Debt, the Savings Rate and Monetary Policy’, Bank for International Settlement Papers, 46: 83–94.Google Scholar
Clifford, M. (1990), ‘Good Times, Bad Times’, Far Eastern Economic Review, 2 August: 44.Google Scholar
Cooper, J.F. (2009), ‘The Devolution of Taiwan’s Democracy during the Chen Shui-bian Era’, Journal of Contemporary China, 18(60): 463–478.CrossRefGoogle Scholar
Council for Economic Planning and Development (2005), Privatisation of SOEs in Taiwan (Taipei: CEPD).Google Scholar
Crouch, H. (1996), Government and Society in Malaysia (Ithaca: Cornell University Press).Google Scholar
Economist Intelligence Unit (1994), Economist Intelligence Unit Country Report (EIUCR): Taiwan, 1994, 1st Quarter (London: Economist Intelligence Unit).Google Scholar
Economist Intelligence Unit (1996), Economist Intelligence Unit Country Report (EIUCR): Taiwan, 1996, 1st Quarter (London: Economist Intelligence Unit).Google Scholar
Economist Intelligence Unit (1997), Economist Intelligence Unit Country Report (EIUCR): South Korea, 1997, 4th Quarter (London: Economist Intelligence Unit).Google Scholar
Economist Intelligence Unit (1999), Economist Intelligence Unit Country Report (EIUCR): Taiwan, 1999, 1st Quarter (London: Economist Intelligence Unit).Google Scholar
Economist Intelligence Unit (2004), Economist Intelligence Unit Country Report (EIUCR): South Korea, August 2004 (London: Economist Intelligence Unit).Google Scholar
Friedland, J. (1988), ‘Controlled Collapse’, Far Eastern Economic Review, 13 October: 107–109.Google Scholar
Forbes (1998), Forbes, 1 June: 13.CrossRefGoogle Scholar
Gomez, E.T. (2002), ‘Political Business in Malaysia’, in E.T. Gomez (ed.), Political Business in East Asia (London: Routledge): 82–114.Google Scholar
Gomez, E.T. (2004), ‘Governance, Affirmative Action and Enterprise Development’, in E.T. Gomez (ed.), The State of Malaysia (London: Routledge Curzon): 49–78.Google Scholar
Gomez, E.T. and Jomo, K.S. (1997), Malaysia’s Political Economy (Cambridge: Cambridge University Press).Google Scholar
Gourevitch, P.A. and Shinn, J. (2005), Political Power and Corporate Control (Princeton: Princeton University Press).Google Scholar
Guo, C.-T., Chen, S.-M. and Huang, Z.-H. (2000), ‘Money up for Grabs? The Impact of Democratization on Taiwan’s Financial System’, in C. Yun-Han and B. Tzong-Ho (eds), Democratic Transition and Economic Conflicts (Taipei: Laureate Book)): 75–111.Google Scholar
Hahm, J.-H. (2003), ‘The Government, the Chaebol and Financial Institutions before the Economic Crisis’, in S. Haggard, W. Lim and E. Kim (eds), Economic Crisis and Corporate Restructuring in Korea (Cambridge: Cambridge University Press): 79–101.Google Scholar
Hahm, J.-H. (2007), ‘Ten Years after the Crisis: Financial System Transition in Korea’, paper presented to the Conference on Ten Years after the Korean Crisis, Seoul, 19–21 September.Google Scholar
Hogan, J.R. and Abiko, Y. (1996), ‘Financing Capital Market Intermediaries in Korea’, in H.S. Scott and P.A. Wellons (eds), Financing Capital Market Intermediaries in East and Southeast Asia (The Hague: Kluwer): 123–157.Google Scholar
Holloway, N. and Clifford, M. (1991), ‘South Korea: Finance – Creaking Conduits’, Far Eastern Economic Review, 13 June: 64–66.Google Scholar
Hundt, D. (2009), Korea’s Developmental Alliance (London: Routledge).Google Scholar
Jayasankaran, S. (2001), ‘Final Sacrifice: Daim Bows Out’, Far Eastern Economic Review, 14 June.Google Scholar
Jayasankaran, S. (2002), ‘Mahathir’s Trouble-shooter’, Far Eastern Economic Review, 14 March.Google Scholar
Jin, D.Y. (2006), ‘Political and Economic Processes in the Privatisation of the Korean Telecommunications Industry’, Telecommunications Policy, 30(1): 3–13.Google Scholar
Johnson, S. and Mitton, T. (2003), ‘Cronyism and Capital Controls’, Journal of Financial Economics, 67(3): 351–382.Google Scholar
Jomo, K.S. (2003), M Way: Mahathir’s Economic Legacy (Kuala Lumpur: Forum).Google Scholar
Jomo, K.S. (2004), ‘Were Malaysia’s Capital Controls Effective?’, in K.S. Jomo (ed.), After the Storm (Singapore: Singapore University Press): 173–203.Google Scholar
Kim, H.-B. and Lee, C.H. (2006), ‘Financial Reform, Institutional Interdependence, and Supervisory Failure in Post-Crisis Korea’, Journal of East Asian Studies, 6(3): 409–431.Google Scholar
Kim, J.-H. (2001), ‘Top Chaebol’s Presence in Non-Banking Financial Industry Increased Last Year’, Korea Herald, 24 March.Google Scholar
Kim, J.-H. (2004), ‘Government to Support Small Manufacturers’, Korea Herald, 3 February.Google Scholar
Kim, J.-M. (2006a), ‘Banks Move to Help Small Businesses’, Korea Herald, 19 October.Google Scholar
Kim, J.-M. (2006b), ‘Bourse Misses Mark as Capital Provider’, Korea Herald, 3 January.Google Scholar
Ko, K.-T. (2005), ‘Size Matters for National Pension Fund’, Korea Herald, 12 December.Google Scholar
Kwak, Y.-S. (1999), ‘Stock Market Prompts Chaebol to Create More Investment Funds’, Korea Herald, 30 June.Google Scholar
Laeven, L. (2002), ‘Financial Constraints on Investments and Credit Policy in Korea’, Journal of Asian Economics, 13(4): 251–269.Google Scholar
Langley, P. (2008), The Everyday Life of Global Finance (Oxford: Oxford University Press).Google Scholar
Lee, C.H., Lee, K. and Lee, K. (2002), ‘Chaebols, Financial Liberalisation and Economic Crisis’, Asian Economic Journal, 16(1): 17–35.Google Scholar
Lee, P.S. and Chu, Y.H. (2008), ‘The New Political Economy after Regime Turnover in Taiwan’, in S.M. Goldstein and J. Chang (eds), Presidential Politics in Taiwan (Norwalk: EastBridge)): 143–170.Google Scholar
Lim, C. (1994), ‘Boosting the Bourse’, Malaysian Business, 1 April.Google Scholar
Lim, W. (2003), Public Enterprise Reform and Privatisation in Korea (Seoul: Korea Development Institute).Google Scholar
MacIntyre, A. (2003), The Power of Institutions (Ithaca, NY: Cornell University Press).Google Scholar
Mahathir, M. (2003), ‘Why Capital Controls’, in K.S. Jomo (ed.), M Way: Mahathir’s Economic Legacy (Kuala Lumpur: Forum): 201–208.Google Scholar
Menon, N. (1992), ‘Question of Balance’, Investor Digest, 9 November.Google Scholar
Moore, J. (1988a), ‘Problems at the Margin’, Far Eastern Economic Review, 21 January: 48–49.Google Scholar
Moore, J. (1988b), ‘Frustrated Openings’, Far Eastern Economic Review, 19 May: 85–86.Google Scholar
Moran, M. (1990), ‘Financial Markets’, in J. Simmie and R. King (eds), The State in Action (London: Pinter): 43–56.Google Scholar
New Straits Times (1996), ‘Rapid Development in the Capital Market’, New Straits Times, 28 March.Google Scholar
New Straits Times (2000), ‘Finance Minister Has Approved Capital Market Master Plan’, New Straits Times, 29 December.Google Scholar
New Straits Times (2001), ‘Securities Commission Appoints Advisory Council on Master Plan Issues’, New Straits Times, 29 March.Google Scholar
Paisley, E (1993), ‘Shroff: Seoul – Picking Pockets’, Far Eastern Economic Review, 2 September: 70.Google Scholar
Park, J. (2009), ‘Lessons from SOE Management and Privatisation in Korea’, KDI School of Public Policy and Management Working Paper 09-10 (Seoul).Google Scholar
Park, J.-Y. (2006), ‘Foreign Capital no Longer the Major Market Force’, Korea Herald, 25 August.Google Scholar
Park, K.S. (2003), ‘Bank-led Corporate Restructuring’, in S. Haggard, W. Lim and E. Kim (eds), Economic Crisis and Corporate Restructuring in Korea (Cambridge: Cambridge University Press): 181–206.Google Scholar
Park, S.-S. (2002), ‘Government to Take Stronger Measures to Put Brakes on Rising Household Loans’, Korea Herald, 11 November.Google Scholar
Park, S.Y. (1999), ‘Financial Reform and its Impact on Corporate Organisation in Korea’, in G. deBrouwer and W. Pupphavesa (eds), Asia Pacific Financial Deregulation (London: Routledge): 207–231.Google Scholar
Rajan, R.G. and Zingales, L. (2003), Saving Capitalism from the Capitalist (Princeton: Princeton University Press).Google Scholar
Rodan, G. (2004), Transparency and Authoritarian Rule in Southeast Asia (London: Routledge Curzon).Google Scholar
Semkow, B.W. (1994), Taiwan’s Capital Market Reform (Oxford: Clarendon Press).Google Scholar
Shen, Z.-H. (2005), ‘Launching the Second Financial Reform’, Taiwan Economic Forum, 3(4): 1–25.Google Scholar
Shi, Y. and Chen, Y.-D. (2003), ‘The Development of a Multidimensional Financial System’, CBC Quarterly, 25(4): 23–29.Google Scholar
Sohn, T.-S. (1998a), ‘Small, Medium-sized Firms to Receive Collateral-free Trade Financing’, Korea Herald, 11 July.Google Scholar
Sohn, T.-S. (1998b), ‘Big Businesses from Alliances with Small Firms’, Korea Herald, 17 April.Google Scholar
Sun, S. (1998), ‘Bold Moves’, Investor Digest, September: 6–8.Google Scholar
Taipei Stock Exchange (TSE) (1999), Fact Book (Taipei: TSE).Google Scholar
Tashiro, Y. and Osman, D. (1996), ‘Financing Capital Market Intermediaries in Taiwan’, in H.S. Scott and P.A. Wellons (eds), Financing Capital Market Intermediaries in East and Southeast Asia (The Hague: Kluwer): 247–267.Google Scholar
Till, M. (1990), ‘Gaining a Toehold in Capital Market’, Business Korea, June: 63–66.Google Scholar
Underhill, G.R.D., Blom, J. and Mugge, D. (2010) (eds), Global Financial Integration Thirty Years On (Cambridge: Cambridge University Press).Google Scholar
Wall Street Journal (2004), ‘Taiwan’s President to Meet Stock Firms’, Wall Street Journal, 20 May.Google Scholar
Walter, A. (2008), Governing Finance (Ithaca, NY: Cornell University Press).Google Scholar
Wang, J.-S., Chen, J.-T. and Chou, P.-H. (2008), ‘Market Reactions to the Passage of the Financial Holding Company Act in Taiwan’, Pacific Economic Review, 13(4): 453–472.Google Scholar
Woo, W.T. and Liu, L.-Y. (1994), ‘Taiwan’s Persistent Trade Surpluses’, in J.D. Aberbach, D. Dollar and K.L. Sokoloff (eds), The Role of the State in Taiwan’s Development (New York: M.E. Sharpe): 90–112.Google Scholar
Wu, X.-L. (2003), ‘The Road to Liberalization’, Taiwan Economic Forum, 1(7): 39–61.Google Scholar
Wu, Y.-S. (2002), ‘Taiwan in 2001’, Asian Survey, 42(1): 29–38.CrossRefGoogle Scholar
Yoo, C.-M. (2000), ‘Chaebol Accused of Using Bond Issues to Illegally Accumulate Wealth and Power’, Korea Herald, 25 January.Google Scholar
Yoo, C.-M. (2001), ‘Ailing Hyundai Firms to Get Emergency Loans’, Korea Herald, 12 March.Google Scholar
Zainal, A.Y., Hussin, A.A., Alowi, I., Lim, C.S. and Singh, S. (1994), ‘Financial Reform in Malaysia’, in G. Caprio, I. Atiyas and J.A. Hanson (eds), Financial Reform (Cambridge: Cambridge University Press): 151–209.Google Scholar
Zhang, X. (2003), ‘Political Structures and Financial Liberalisation in Pre-crisis East Asia’, Studies in Comparative International Development, 38(1): 64–91.Google Scholar
Zhang, X. (2010), ‘Global Forces and Corporate Reforms in South Korea’, International Political Science Review, 31(1): 59–76.Google Scholar