S-Space College of Social Sciences (사회과학대학) Institute of Economics Research (경제연구소) Seoul Journal of Economics Seoul Journal of Economics vol.33 no.1~4 (2020)
Entrepreneurship in the Context of Western vs. East Asian Economic Models
- Peter W. Heller
- Issue Date
- Seoul Journal of Economics, Vol.33 No.4, pp.539
- Recent developments in the global economy, notably theaccelerating trade war between the US and China and the impactof the Covid-19 pandemia, have fuelled the debate which model of economic development, the Western or the East Asian one, is more competitive in a long term perspective. The intention of this paper is a brief investigation, based on historical and empirical research, into the role of entrepreneurship as a major factor of competitiveness and key driver of economic development in both models.International reports based on data of the Global Entrepreneurship Monitor and the World Economic Forum’s Global CompetitivenessIndex come to diverging conclusions which model might prevail.The paper outlines why the entrepreneurial dynamics in EastAsia, particularly in China and Vietnam cannot be adequatelycaptured by standards and rating systems based on the theoretical framework of liberal capitalism, as the historical, cultural and social factors of the East Asian model lie beyond its reach. However, the Western narrative envisages a determined course of history that economic progress will inevitably drag China and Vietnam on atrajectory towards the Western model. There is sound evidence that this will not happen.