Developmental Divergence:A Comparative Case Study Of China's State-Owned Enterprises And South Korea's Chaebol

State support of conglomerate structured big business groups has resulted in rapid economic development in post-war political economies.China's State-owned Enterprises and South Korea's chaebol are two examples of this economic model.However,although both countries started from a similar point of ‘backwardness' and have utilised strong state intervention in economic policy,as well as strong support for their respective big business groups,the nature of the relationship between the state and their respective big business group is drastically different.China's state has maintained strict control and influence over its State-Owned Enterprises',however in South Korea the chaebols have ‘captured' the state.This thesis is a comparative study of the development of the South Korean chaebol system and China's State-Owned Enterprises,in order to determine the key causal factors of this divergent outcome.It utilises historical analysis and comparative analysis in order to conduct process tracing to identify the path of divergence.