Learning, institutions and Korea's FDI policy compared with Japan
The basic assertion of this thesis is that policy makers' belief systems and economic institutions have to change their structures and contents as the nation's economic developmental stage is upgraded. Put differently, a state's economic performance or achievement of economic objectives will be facilitated if there is no cleavage or conflict among economic policy, economic belief systems, and economic institutions. This means that the utility of the developmental state is valid until a nation's economy is in a take-off position. Persistent developmentalism after this stage will result in developmentalism losing its validity and becoming a main obstacle for further economic development. At this time, more liberalised economic policies which are not only supported by changed belief systems and institutions but also compatible with the neo-liberalising international political economy are needed. In other words, this thesis does not seek to answer the question 'which is the better strategy for economic development between developmentalism and neo-liberalism?' but emphasises the importance of the proper timing of transition from developmentalism to a liberalised and deregulated economy which is compatible with a mature civil society and the neo-liberalising international political economy.