ABSTRACT
The purpose of this chapter is to empirically reaffirm the hypotheses and the many theoretical underpinnings put forward in chapter 3 for a developing economy. Korea was chosen for the enquiry in the expectation that it will produce useful policy implications not only for her government to develop the capital goods sector, but for many developing countries whose capital goods sector is still underdeveloped. Korea has successfully formed a machine tool industry, one of the most prominent sub-sectors of capital goods, over a relatively short period. We attempt here to find evidence that its user firms have played an important role in the formation and development of the Korean machine tool industry in one way or another.
