This paper analyzes the role of government and government failure in
the economic development phase in Korea. The excessive government
intervention which had been performed for the high economic growth in
the phase of economic development for a long period interfered with
transformation of the economic system towards more efficient system. In
addition, structural adjustment policy that had been implemented by government resulted in distortion of the market mechanism. It may be said
that swift and strong government intervention was unavoidable under the
situation facing a serious economic crisis. However, the intervention
without transparent and fair rules might cause to delay the structural adjustment in financial sector and firms. The structural adjustment under asymmetric information may causes
huge transaction costs. Therefore, structural adjustment must be implemented
by financial institutions and firms which have much more information
than the government. Moral hazard and adverse selection can occur
if structural adjustment is implemented by the government under asymmetric information. The government needs to make transparent and
fair rules for structural adjustment, and the adjustment of structure in the
financial sector and firms must be performed by financial institutions and firms.
引用
彦根論叢, 第382号, pp. 245-271
The Hikone Ronso, No.382, pp. 245-271
金融危機と企業の構造調整 : 韓国の構造調整の成果とその方向性（成瀬龍夫博士退職記念論文集）
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