After World Banks noted acceptance of a certain role of government intervention, it can be said that ‘Developmental state’ theory is the centre of the debate (Johnson 1982; Amsden 1989; Wade 1990; Chan 1993; MacIntyre 1994; Evans 1995).
For instance, Korea was cited as being one of the nations that had highly Confucian values and was characterized by significant state-led export oriented industrialization, authoritarianism and political development which was followed by economic development. Korea is ranked among the most developed third world countries which further raised the need for the study of the reasons why East Asian countries have been able to record such a magnitude of economic growth within a very short time. As a matter of fact, East Asian countries development has been far much more than other developing countries particularly those in Latin America such as Brazil, Paraguay, Uruguay etc.
The question under investigation in this work is what is the implication of East Asian Economic Development? The importance of this question is that it will shed light into the reasons why East Asian countries have been able to record high economic growth rate within a short time and could reveal possible routes that other developing economies could adopt and move on to a trajectory of higher growth.
The present study will attempt to present an analytical overview of the factors that caused the phenomenon. As shall be shown, none of the arguments that try to explain the event are comprehensively convincing nor are totally discardable thereby reflecting partial truth to all of them. The Liberalist views tend to stress on increased market orientation while Mercantilist views emphasize on efficient regulation. The present study will explore both sides of the argument using a level analysis framework to pursue the truth. In the following section, a survey