Economics

In this chapter will seek to throw light on some keys issues from many scholars in the context of theory it related to this research. It is useful for situating the study for charting out what kind of theoretical implication the finding of this study are likely to offer. Therefore in this chapter we discuss the role of state in economic development and the competitiveness in the term of competitiveness in the world market by using revealed comparative advantage and lastly are short brief about the electronics industry.

2.1. The Role of the State in Economic Development

The role of state in economic development is enormous not only as regulator but also in law enforcement, the provision of education, adequate infrastructure until on health. The achievement of all the government's role in economic development is depends on the readiness and the government itself. In East Asia has been stated that in the role of state has played in economic development in the region. This can be seen from the many studies about the success of the role of state in East Asia by many authors such as World Bank, 1993, Johnson, 1982, Wade and White, 1984, Amsden, 1989 and In this session we will discuss about the perception of the role of state development in East Asia, with emphasis on the relationship between public policy and economics. There are 3 models of the state which we will discuss is the market led model, the state led business model and toward the state interdependence.

The Market Led-Model

Major institutional anchor market and East Asian development model is a symbol and development strategies, as already stated in the 1980s.by World Bank. In a world development report 1987, the World Bank has been consistently to provide some insight straight from the neo classic from Alfred Marshall's point of view that emphasizes the positive effects of unlimited market in the optimal allocation of resources in order to support free trade and free market development model . In the...