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Economic Outcomes from Reliance on Foreign Capital: Taking South Korean and Brazil’s Crises in the 1990s as Examples
- 1 Beijing 101 Middle School, Beijing, 100091, China
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Abstract
This article analyzes the economic crises of South Korea in 1997 and Brazil in 1999, focusing on the two countries' reliance on foreign capital and their recovery policies under the leadership of the International Monetary Fund (IMF). Both countries suffered severe currency devaluation and economic recession due to capital flight. However, with different economic structures and response policies, the recovery paths of the two countries are also very different. South Korea had benefited from an export-led recovery and sweeping financial reforms, while commodity-dependent Brazil faced more challenges. This study provides an important reference for emerging economies dealing with foreign investment dependence and post-crisis recovery issues. This article specifically analyzes key economic indicators such as Foreign Direct Investment (FDI) flows, per capita Gross Domestic Product (GDP), and exchange rate fluctuations during the economic crisis in South Korea and Brazil, and conducts an in-depth comparison of the two countries' policies to respond to the crisis. Finally, this article puts forward specific countermeasures and suggestions such as diversifying the industrial structure, strengthening the independence of monetary policy, and improving public trust to deal with possible financial instability in the future.
Keywords
economic crisis, post-crisis policies, foreign capital
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Cite this article
Zhou,Y. (2025). Economic Outcomes from Reliance on Foreign Capital: Taking South Korean and Brazil’s Crises in the 1990s as Examples. Advances in Economics, Management and Political Sciences,144,37-43.
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Volume title: Proceedings of ICFTBA 2024 Workshop: Finance's Role in the Just Transition
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