Title: From banks to markets: Malaysian and Taiwanese finance in transition
Abstract: ABSTRACT ABSTRACT The past two decades have witnessed the exponential growth of stock markets and the significant market orientation of financial systems in Malaysia and Taiwan. These changes were well underway prior to the Asian crisis of 1997–98 but have been consolidated and accelerated by post-crisis reforms that have further institutionalized market-oriented practices. However, the changing patterns of financial markets have not preordained convergence towards the Anglo-American model of capitalism and have shown significant divergences from financial liberalism. Challenging the market-driven convergence and historical institutionalist models, this article locates the political sources of changing financial structures within the interaction between international structural forces and domestic interest alliances of private and public actors. This interactive process has not only oriented the national financial architecture towards securities markets but also made market-oriented changes different from the neo-liberal paradigm. KEYWORDS: Globalizationpolicy alliancesfinancial marketsMalaysiaTaiwan ACKNOWLEDGEMENTS I would like to thank Andreas Bieler, Philip Cerny, Edmund Terence Gomez, Daniel Mügge, Geoffrey Underhill, three anonymous referees and the editors of this journal for their help, advice and encouragement. I would also like to thank the British Academy and the University of Nottingham Asia Research Fund for financial support. Any errors and omissions are my own responsibility. Notes 1 Zhuang et al. (2000) Zhuang, J., Edwards, D., Webb, D. and Capulong, M. V. A. 2000. Corporate Governance and Finance in East Asia, Manila: Asian Development Bank. [Google Scholar] discuss at length the traditional model of corporate finance and governance in Malaysia, Taiwan and many other East Asian economies. 2 A succinct discussion of the model is provided by Zysman (1983) Zysman, J. 1983. Governments, Markets, and Growth, Ithaca, NY: Cornell University Press. [Google Scholar]. 3 The MSC, which was established in 1992, succeeded the Capital Issues Committee. The SEC was replaced by a financial supervisory commission in 2004. 4 Recent studies have criticized the theories on these grounds. See, for instance, Hancké et al. (2007) Hancké, B., Rhodes, M. and Thatcher, M. 2007. Beyond Varieties of Capitalism, Oxford: Oxford University Press. [Crossref] , [Google Scholar] and Streeck and Thelen (2005). 5 Author interviews with former deputy governors of the CBC/finance ministers, Taipei, 3 and 13 November 2002 and with a former assistant governor of the BNM, Kuala Lumpur, 3 July 2005. 6 For more detailed discussions of these regulatory changes, see Asiamoney (2001/2002: 30–2), Izma (2001 Izma, N. 2001. 'Going According to Plan'. Investor Digest, : 4–14. May [Google Scholar]: 4–14) and Rodan (2004 Rodan, G. 2004. Transparency and Authoritarian Rule in Southeast Asia, London: Routledge Curzon. [Crossref] , [Google Scholar]: 131–6). 7 More than 30% of Taiwan's population owned stocks in the late 1990s (Forbes, 1998: 122), compared with 8% in Korea and 26% in the UK during the period 1997–2000 (Australian Stock Exchange (ASX), 2003 ASX. 2003. International Share Ownership, Sydney: ASX. [Google Scholar]: 2).
Publication Year: 2009
Publication Date: 2009-09-10
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 16
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