ABSTRACT
South Korea and Taiwan have been widely acclaimed as the two most successful cases of development in history. While their rapid growth and industrialization have undoubtedly been the result of a number of interacting economic, political, and social factors, many studies have shown that an outward-looking development strategy with emphasis on export promotion has played a key role in the development of the two economies. Outward-looking strategies, characterized by their emphasis on export promotion, can differ among countries and among different time periods in a given country, in terms of the bias of the incentive system, the goods and services selected for export support, and the policy measures adopted to carry out the strategies. There is considerable empirical evidence showing that export-oriented developing countries have outperformed those pursuing restrictive trade policies or attempting to develop their industries through import-substitution policies.
