The political economy of preindustrial Korean trade

Hun-Chang Lee, Peter Temin

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Preindustrial Korea had little foreign trade in spite of the advantage of being a small peninsular country. We present a theory of political economy to show that the preindustrial Korean policy of suppressing private trade, like that of China, only can be explained by noneconomic factors such as the consideration of externalities and rulers' incentives, bounded rationality of policymakers, and the path dependence of history. It was a rational or bounded-rational decision to increase total gains, that is, economic and noneconomic gains, from trade under the east Asian geopolitics.

Original languageEnglish
Pages (from-to)548-571
Number of pages24
JournalJournal of Institutional and Theoretical Economics
Volume166
Issue number3
DOIs
Publication statusPublished - 2010 Sep 1

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Political economy
Asia
Incentives
Bounded rationality
China
Korea
Geopolitics
Externalities
Factors
Foreign trade
Politicians
Gains from trade
Economics
Path dependence
Small countries

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

The political economy of preindustrial Korean trade. / Lee, Hun-Chang; Temin, Peter.

In: Journal of Institutional and Theoretical Economics, Vol. 166, No. 3, 01.09.2010, p. 548-571.

Research output: Contribution to journalArticle

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