Relation‐based versus Rule‐based Governance: an Explanation of the East Asian Miracle and Asian Crisis
Year: 2003
Type: article
Abstract: The paper aims to establish a theory of relation‐based governance to explain both the “East Asian miracle” and the Asian crisis. The author first defines “relation” and “relation‐based governance” in terms of information and enforcement, and then analyzes the nature and dynamics of relation‐based governance, comparing its benefits and costs with that of “rule‐based governance” in terms of observability/verifiability, commitment, and transaction costs. The theory is applied to examine a particular relation‐based governance system—the Japanese model—to explain both the East Asian miracle and the Asian crisis. The framework provides foundations for studies of East Asian catching‐up and economic development in general.
Author: John Shuhe Li
Language: English
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1970199577