Edited by Christopher M. Dent and Jörn Dosch
Chapter 3: Managing the Great Recession in South Korea and Mexico: Economic Institutions, Domestic Market and Regional Trade
3. Managing the Great Recession in South Korea and Mexico: economic institutions, domestic market and regional trade José Luis León-Manríquez* 1. INTRODUCTION Due to globalisation of production and financial exchanges, the 2008/09 global financial crisis (the ‘Great Recession’) spread across the planet with extraordinary swiftness. The mechanisms of contagion of this crisis were at least as diverse as the responses from different countries. For the sake of analytical simplicity, The Economist (10 March 2009) summarized these responses by stating that ‘we are all Keynesians now’. However convincing this statement might seem, it is still worth analysing the mechanisms of transmission as well as the specific answers to the global crisis undertaken by different Asia-Pacific Rim countries. Two interesting comparative cases are South Korea and Mexico, both being manufacturing-export economies of similar size with parallel experiences of trade liberalisation, privatisation and productive restructuring in the 1980s and the 1990s. In terms of gross domestic product (GDP), they ranked as the 14th (Mexico) and the 15th (South Korea) largest economies in the world in 2010 (World Bank 2011). In 2008, both countries experienced a rapid devaluation of their currencies, falling levels of exports and sharp falls in their stock exchange indices. Forecasts made by the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) foresaw moderate declines in their GDPs by the end of 2009. Yet, at the end of that period, Mexico recorded a 6.5 percent contraction in GDP and South Korea a modest growth...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.