Nt1310 Unit 2 Research Paper

TA: Jesse Drucker Zamarron 1

Jim Zamarron

861071340

10. According to the accounts provided by Hamilton and Biggart (1988), by Biggart (1991), and/or by Saxenian (2011), compare the impact of two or more of the following influences on the economies of one or more East Asian countries: institutions; networks; markets; transaction costs. The Asian Miracle

Since WWII, East Asian countries have undergone drastic changes in their economic infrastructure. Even though WWII left this region war torn, countries such as Taiwan and Japan have become an “Asian Miracle” as they rapidly developed despite their predicament. In particular, “Japan now has the second largest economy.. [and] Taiwan has the largest per capita foreign reserves in the world”. (Biggart 199) The advancement of these countries has long been noted and studied by Hamilton, Biggart and Saxenian. Their research has led to differing approaches in understanding these countries but the ideas they used to understand the development of these countries have fundamental similarities. Instilled in their research are dynamics of networks, markets and institutions as

Although, the transnational technical community was the significant reason in which Taiwan has developed so rapidly. Institutions and markets have had a larger effect on Japan. The culture and history of Japan had strong values for building an economic empire and eventually its market grew to match it. It’s large enterprises formed its economic power. Although Biggart would lean towards the institutional approach, I partially agree that Japan’s institutions allowed for its growth but this was not the case for Taiwan. They both utilized their markets but networks significantly helped Taiwan while institutions catalyzed Japanese