The globalization of world capitalism constrains the ability of the developmental state to pursue an independent industrialization and foreign trade strategy. We use an intertemporal, multiregion CGE model, to study the fundamental reasons for a financial crisis. We find that we can create a...

Two years and more have passed since the outbreak of the East Asian Financial crisis in 1997. Although international economic and financial conditions deteriorated somewhat in the wake of the crisis, the world economy escaped a “global slump.” Using an intertemporal general equilibrium model...