Applying Gerschenkron Model to Shipping Industry in Developing Country

Standing in front of the huge benefits that shipping industry brings about in economy, politics and society of a country, many countries, especially the developing countries have strived hard to invest and develop their shipping industry (if any) by many methods such as economic reform act, tax allowance or even raising capital from domestic and foreign resources which seems very difficult to implement in the 21st century. According to analysis of A. Gerschenkron - a Russian economic historian at around 60 years ago, developing countries, who regarded shipping as an industry of strategic value with multi-dimensional affects for economic development, had utilized their backward advantages and imported modern technology, capital and skillful labor from more advanced countries in the course of fast industrialization in their countries. In fact, Gerschenkron model has applied in shipping industry of many backward countries. Korea's industrialization in shipping analyzed by Tae-Woo Lee (1996) could considered as a good example, in which the country makes use of policies on capital of tonnage finance, ideology, labor management in order to develop the industry. In this paper, the authors try to find the applicability of the Gerschenkron model to the shipping industry in developing countries, especially in Vietnam. And some questions which are necessary for the author's next paper about developing strategies to shipping industry in developing countries will be asked.