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Capital Markets and Regime Type in East Asia

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Stock markets around the world do not conform to a single model, but systematically vary according to the types of companies listed, the composition of investors, the role of the state as a regulator and/or a participant, and the political foundation for their creation and operation. This study analyzes stock markets in China and Taiwan to explore the hypothesis that political regime type strongly influences the type of stock market institutions that are created in a given country. In both cases, stock markets were established under authoritarian regimes with developmental emphases. Comparing China against Taiwan allows me to examine the effect of socialist versus non-socialist authoritarianism on the nature of political imperatives that shape stock market institutions. I find that the role of the party-state in domestic financial markets differs substantially in China and Taiwan. While in China the state is a key participant in stock markets, in Taiwan the role of the Kuomintang party eclipses the role of the state. This trend has been reinforced since Taiwan’s democratization in the late 1980s.
Finally, this article asks what, if any, have been the contributions of stock market financing to economic development in these cases? The East Asian developmental state model places a higher emphasis on the role of bank-led finance in development. To date, this expectation continues to hold in the Chinese case. The stock market in Taiwan, however, has begun to move toward a more important role in allocating capital in the post-developmental state era.

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market (211), compani (210), stock (153), taiwan (138), list (133), state (124), china (124), share (110), capit (72), polit (56), chines (56), financi (51), percent (50), exchang (47), ratio (47), 19 (45), investor (44), current (44), domest (40), privat (39), also (39),
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Cooper, Mary. "Capital Markets and Regime Type in East Asia" Paper presented at the annual meeting of the American Political Science Association, Hyatt Regency Chicago and the Sheraton Chicago Hotel and Towers, Chicago, IL, Aug 30, 2007 <Not Available>. 2011-06-08 <http://www.allacademic.com/meta/p209645_index.html>

APA Citation:

Cooper, M. C. , 2007-08-30 "Capital Markets and Regime Type in East Asia" Paper presented at the annual meeting of the American Political Science Association, Hyatt Regency Chicago and the Sheraton Chicago Hotel and Towers, Chicago, IL Online <PDF>. 2011-06-08 from http://www.allacademic.com/meta/p209645_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: Stock markets around the world do not conform to a single model, but systematically vary according to the types of companies listed, the composition of investors, the role of the state as a regulator and/or a participant, and the political foundation for their creation and operation. This study analyzes stock markets in China and Taiwan to explore the hypothesis that political regime type strongly influences the type of stock market institutions that are created in a given country. In both cases, stock markets were established under authoritarian regimes with developmental emphases. Comparing China against Taiwan allows me to examine the effect of socialist versus non-socialist authoritarianism on the nature of political imperatives that shape stock market institutions. I find that the role of the party-state in domestic financial markets differs substantially in China and Taiwan. While in China the state is a key participant in stock markets, in Taiwan the role of the Kuomintang party eclipses the role of the state. This trend has been reinforced since Taiwan’s democratization in the late 1980s.
Finally, this article asks what, if any, have been the contributions of stock market financing to economic development in these cases? The East Asian developmental state model places a higher emphasis on the role of bank-led finance in development. To date, this expectation continues to hold in the Chinese case. The stock market in Taiwan, however, has begun to move toward a more important role in allocating capital in the post-developmental state era.

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Document Type: PDF
Page count: 33
Word count: 12124
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Mary Comerford Cooper Ohio State University cooper.1670@osu.edu Capital Markets and Regime Type in East Asia Abstract: Stock markets around the world do not conform to a single model but systematically vary according to the types of companies listed the composition of investors the role of the state as a regulator and/or a participant and the political foundation for their creation and operation. This study analyzes stock markets in China and Taiwan to explore the hypothesis that political regime type
Transformations: Mainland China Hungary the Soviet Union and Taiwan. Stanford CA: Stanford University Press. Xingzheng Yuan Guojia Fazhan Jijin - Kaifa Jijin (National Development Fund Executive Yuan) (Accessed 23 August 2007). “Zhongguo Minying Qiye (Shangshi Gongsi) Gufen Zhishu Jianjie” (Brief Introduction to the China Private Enterprise (Listed Company) Stock Index) September 19 2003. (Accessed 13 January 2006). Zysman John. 1983. Governments Markets and Growth: Financial Systems and the Politics of Industrial Change. Ithaca N.Y.: Cornell


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