Flexibility between market-led and government-led economies

Subramaniam, Shri Dewi, and Kasipillai, Jeyapalan, (2007) Flexibility between market-led and government-led economies. International Journal of Management Studies, 14 (2). pp. 35-48. ISSN 0127-8983

Affiliations

Universiti Utara Malaysia, Faculty of Economics
Monash University Malaysia, School of Business

Abstract

The 1997-98 East Asia financial crisis has raised doubts over the roles of two economic-systems: market-led and government-led economies. This paper deliberates on the two opposing economic systems: the choice of which are continually debated. There is a need for governments to look at economic flexibility and determine whether the countries affected by the financial crisis could reposition themselves fast enough. More specifically, this paper evaluates the performance of government-led economies such as those in Malaysia, Singapore, Thailand, Philippines, and Indonesia when compared to marketled economies as practised in the United Kingdom, United States, and Japan. A compilation of an index method based on Angresano (1996) consisting of the quantitative performance measure for an identified country was computed over the average period 1980-2003. The findings of this study suggest that the approaches to a market-led or government-led economy is a matter of degree and are not mutually exclusive.

Krisis kewangan di Asia Timur pada tahun 1997-1998 telah menimbulkan keraguan mengenai peranan dua sistem ekonomi iaitu ekonomi berpandukan pasaran dan ekonomi berpandukan kerajaan. Kajian ini membuat pertimbangan di antara dua sistem ekonomi bertentangan yang mana pilihan di antara dua sistem ini masih lagi menjadi pendebatan. Kerajaan perlu menilai kelenturan suatu ekonomi dan menentukan kadar kemampuan sesebuah Negara itu untuk mengembalikan kedudukannya semula secepat mungkin kesan daripada krisis kewangan. Secara khususnya, kajian ini menilai prestasi ekonomi berpandukan kerajaan seperti di Malaysia, Singapura, Thailand, Filipina dan Indonesia serta membuat perbandingan dengan ekonomi berpandukan pasaran di United Kingdom, Amerika Syarikat dan Jepun. Kajian ini dijalankan berdasarkan kajian terdahulu oleh Angresano (1996), iaitu satu kaedah penyusunan indeks yang meliputi pengukuran prestasi secara kuantitatif bagi negara yang dikenal pasti untuk tempoh di antara 1980-2003. Keputusan kajian mendapati pilihan pendekatan sama ada ekonomi berpandukan pasaran atau ekonomi berpandukan kerajaan adalah persoalan darjah dan bukannya pilihan saling eksklusif.

Item Type:

Journal

Additional Information:

Formerly known as Jurnal Analisis

Keywords:

Government-led economy; market-led economy; flexibility; compilation index.

Subjects:

H Social Sciences, Economics, Sociology

ID Code:

10599