TY  - BOOK
AU  - Chandra,V.
AU  - Braga,C.A.Primo
AU  - Chandra,V.
AU  - Osorio-Rodarte,I.
TI  - Korea and the Bics (Brazil, India and China): Catching Up Experiences 
PY  - 2009///
CY  - Washington, D.C.
PB  - The World Bank
KW  - Antitrust
KW  - Debt
KW  - Drivers
KW  - E-Business
KW  - Economic growth
KW  - Economic theory
KW  - Economic Theory and Research
KW  - Education
KW  - Employment
KW  - Human capital
KW  - Income
KW  - Industrialization
KW  - Industry
KW  - Innovation
KW  - Innovations
KW  - Knowledge for Development
KW  - Labor force
KW  - Labor Policies
KW  - Labor productivity
KW  - Market economies
KW  - Private Sector Development
KW  - Productivity
KW  - Productivity growth
KW  - Property rights
KW  - Rents
KW  - Social Protections and Labor
KW  - Trade liberalization
KW  - Trade reforms
KW  - Water and Industry
KW  - Water Resources
N2  - This paper tests a neo-Schumpeterian model with industry-level data to analyze how Brazil, India, and China are catching up with South Korea's technological frontier in a globalized world. The paper validates Aghion et al.'s inverted-U hypothesis that industries that are closer to the technological frontier innovate to escape competition while longer distances discourage innovating. It suggests that for effective catching up, distance-shortening (or innovation-enhancing) policies may be a necessary complement to liberalization. South Korea and China combined a variety of distance-shortening policies with financial subsidies to promote high tech industries and an export-led growth strategy. Post-liberalization, they leveraged swift competition to spur catch-up. In comparison, Brazil, which was as rich as South Korea, and India, which was as rich as China in 1980, are catching up more slowly. Import-substitution industrialization strategies saddled Brazil and India with a large anti-export bias, and unfocused attention to innovation-enhancing policies dampened global competitiveness. Post liberalization, many of their industries were too far behind the technological frontier to effectively benefit from competition. The catch-up experiences of Brazil, India, and China with South Korea illustrate that distance from the technological frontier matters and that the design of country-specific distance- shortening policies can be an important complement to trade liberalization in promoting catching up with richer countries
UR  - http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-5101
ER  -