ABSTRACT
This chapter reviews the experiences of the Northeast Asian countries in trade, industry and technology policy areas, and highlights some policy issues that have been neglected or misunderstood. It also reviews the Northeast Asian experience in the areas of trade policy, industrial policy and technology policy. The chapter discusses the replicability of the Northeast Asian model, highlighting the question of institutional capabilities and the changes in the world trading system. It deals with the issue of institutional capability. The chapter also discusses the Northeast Asia (NEA) governments have promoted successive generations of infant industries both through trade protection and through other measures. Policies that regulate the inflows of technology in NEA would not have been so effective without the policies to enhance the capabilities of the domestic firms to absorb the imported technologies. The chapter argues that it was actually the weakening of such policies, combined with ill-designed financial deregulation, during the 1990s that created the country's crisis.
