Corporate Governance, Crony capitalism and Economic Crisis: Should the US Business Model replace the Asian Way of 'Doing Business'?

Ajit Singh and Ann Zammit

Working Papers from Centre for Business Research, University of Cambridge

Abstract: This paper considers the Greenspan/Summers/IMF (GSI) argument that the Asian way of doing business was the deep cause of the Asian crisis. The IMF reform programme for the crisis-affected Asian countries suggested they should abandon the Asian business model and adopt the US corporate model. The main findings are: a) contrary to GSI doctrine, poor corporate governance and lack of competition are not common characteristics of the Asian business model; b) that the stock-market based US business model has severe limitations for developing country corporations, not least because of imperfect share prices and the imperfect market for corporate control.

Keywords: Asian and US corporate models; stock markets; Asian crisis (search for similar items in EconPapers)
JEL-codes: D21 G3 O1 (search for similar items in EconPapers)
Date: 2006-06
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-fin, nep-fmk and nep-sea
Note: PRO-2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Corporate Governance, Crony Capitalism and Economic Crises: should the US business model replace the Asian way of “doing business”? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:cbr:cbrwps:wp329

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