Abstract
This article explores the role of the state in industrial transformation in the era of economic globalization. It argues that economic globalization and market liberalization have not necessarily led to the retreat of state capacity in industrial development Given the rising importance of multinational corporations (MNCs) as promoters of international transactions and domestic industrialization, even developing countries are required to show capacity to promote industrial development in cooperation with foreign MNCs. The argument is examined with the case studies of the automobile industry in Thailand and the telecommunications industry in Malaysia.
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