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Introduction Introduction
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Overview of State-owned Enterprises and Sovereign Wealth Funds in East Asia Overview of State-owned Enterprises and Sovereign Wealth Funds in East Asia
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State-owned Enterprises State-owned Enterprises
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Sovereign Wealth Funds Sovereign Wealth Funds
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Political Regimes and State Capitalism Political Regimes and State Capitalism
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Case Studies Case Studies
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Narrow Authoritarian Regime: Brunei Narrow Authoritarian Regime: Brunei
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Single-party Authoritarian Regime: China Single-party Authoritarian Regime: China
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Dominant-party Authoritarian Regime: Singapore Dominant-party Authoritarian Regime: Singapore
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From Single-party Authoritarian Regimes to Democracy: Taiwan From Single-party Authoritarian Regimes to Democracy: Taiwan
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Conclusion and Implications Conclusion and Implications
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References References
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30 State Capitalism in East Asia
Get accessRichard W. Carney is in the Department of Strategy and Entrepreneurship at the China Europe International Business School (CEIBS). His research primarily focuses on business-government relations. He is the author of Authoritarian Capitalism: Sovereign Wealth Funds and State-Owned Enterprises in East Asia and Beyond (Cambridge University Press, 2018), which won the Masayoshi Ohira Prize in 2019. He has published in journals such as the Journal of International Business Studies and the Journal of Financial Economics. He is also the author of Contested Capitalism: The Political Origins of Financial Systems (2009) and is the editor of Lessons from the Asian Financial Crisis (2009).
Krislert Samphantharak is Professsor of Economics at the School of Global Policy and Strategy at University of California San Diego. His research focuses on households, firms, and public policies in emerging economies. He has extensive experience in working in policy-making institutions and served as Executive Director of Puey Ungphakorn Institute for Economic Research at the Bank of Thailand. Samphantharak’s book Households as Corporate Firms: An Analysis of Household Finance Using Integrated Household Surveys and Corporate Financial Accounting was published by Cambridge University Press and is now also available in Chinese edition. His recent publications include the studies of finance and taxation of small and medium enterprises, household debts, decentralization, public goods provision, and economic development of Southeast Asian economies.
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Published:19 December 2022
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Abstract
The chapter examines the relationship between political regimes and state capitalism in East Asia, with accompanying cases to illustrate the dynamics. A four-regime typology is used to characterize national political systems, including narrow authoritarian regimes (Brunei), single party authoritarian regime (China), dominant party authoritarian regime (Singapore), and democracy (Taiwan). With regard to the manifestation of state capitalism, we focus on the relative dominance of state ownership of listed firms and the role of sovereign wealth funds. Although political rulers in Dominant-party Authoritarian Regimes (DPARs) are autocrats, they face different incentives than other autocratic rulers because they hold multiparty elections. This critical feature motivates them to engage in more aggressive state interventions in the corporate sector, especially when their hold on power is threatened. The case studies illustrate: 1) cross-sectional relationship between political regime and the manifestation of state capitalism; 2) the change in state capitalism as a result of a change in the structure of the political regime, as with the case of Taiwan; and 3) the relatively greater assertion of state influence on the corporate sector by rulers in DPARs.
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