Costs of crony capitalism: Theory and reality in some Asian countries

Abstract

Although there have been many studies on the notion of crony capitalism, very few of them systematically investigated the costs of capitalism for nations. Academic works on crony capitalism published in Vietnam are rarer, and almost none examines these costs. The purpose of the study is to introduce and thoroughly analyze the costs of crony capitalism for Asian countries and Vietnam. Using the classification of Enderwick, the findings of the study point out the adverse effects of capitalism under four main types of costs: Allocative Inefficiency, Dynamic Inefficiency, Corruption and Transaction Costs, and Social and Political Instability. The study also provides some implications in order to minimize these costs.

Keywords

• chủ nghĩa tư bản thân hữu
• tăng trưởng kinh tế
• tham nhũng
• tổn phí giao dịch
• bất ổn