Advantages of Backwardness and Linkage Effects: The Steel Industry in Asia

This chapter looks at the steel industries in several Asian countries which have tended to be designated as nationally strategic industries. Examining the diverse development patterns, this chapter finds that the steel industries in latecomer Asian countries typically started growing through backward linkage effects from the growth of steel-user industries. Once the countries successfully utilized the advantages of backwardness in introducing steel production, the industry contributed to the formation and strengthening of the development inducement mechanism in society. The chapter also discusses how even the steel industry, which was once a symbol of national industrialization, is strongly and increasingly affected by the power of globalization in the twenty-first century by examining linkage effects and the (dis)advantages of backwardness.

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