East asia Flashcards
what are the 4 asian tigers?
hong kong
singapore
taiwan
south korea
what was the sucession of east asian growth miracles?
in the 1950s and 60s japan
from late 1950s the 4 asian tigers
from 1970s and 80s malaysia thailand and indoneisia
from 1979 china
from 1990s there was vietnam
what were the ingredients that led to the growth of japans economic miracles?
export led growth
massive domestic investment
re allocation of labour from agriculture
foreign technology acquisition
protectionist barriers
well designed industrial policies
strong security arrangement with USA
what was the trend of gdp growth in singapore?
there was an huge increase in GDP per capita from 1965-2010
what was the trend in life expectancy?
there was a upward trend in life expectancy from 66-81 from 1965-2010
what was the trend in share of manufacturing of GDP
there was a downward trend in the share of GDP
what was the trend in the share of services?
there was an upward trend in the share of services of total GDP
what were the lessons from the east asian miracle?
macroeconomic and politicial stability
adaptability of government policies
government and the market are complementary
promotion of physical and human capital accumulation
rapid re-allocation of resources
intergration with world economy and encouragement of FDI inflows
what were the lessons from the east asian miracle?
-macroeconomic and politicial stability
-adaptability of government policies
-government and the market are complementary
-promotion of physical and human capital accumulation
-rapid re-allocation of resources
-integration with world economy and encouragement of FDI inflows
how does east asia have favourable geography and demograhy?
access to the sea: it has large coastal area
less area than sub-Saharan africa in tropics
much less influence from the natural resource curse
what is the impact of inclusive institutions in asia?
there is a huge impact in growth due to the inclusive institutions. a key example is south korea and north korea. south korea has experiencesd rapid growth whereas the north korea has platoed
what is justin lins comparative advantage friendly strategy?
Dynamic change in an economy’s comparative advantage depends on the dynamic change in a country’s endowment structure
This depends on rate of capital accumulation
Capital accumulation depends on surplus created
Surplus depends on adopting technologies that fit the endowment structure
Therefore: developing countries should adopt a CAF strategy
what is the Lin model of evolving dynamic comparative advantage?
there is originally factor endowments with a low K/L ratio -> comparative advantage in labour intensive manufacturing -> accumulation of profits and the reinvestment leads to capital accumulation -> capital labour ratio rises -> leads to changes in factor endowment and increasing K/L ratio -> upgrading of specialisation and human capital -> more capital/skill intensive exports -> accumulation of profits and more reinvestment into capital accumulation
what are the 4 stages of the development ladder?
1) primary products- an abundent cheap land and labour
2) labour intensive manufactures - low labour costs
3) hi tech manufacturers - capital intensive, technologically sophisticated products
4) services (high level) - domestic and international services
how does comparative advantage evolve over time?
there is a comparative advantage originally in textiles, then in chemical , then in iron and steel, then and automobile, and then in electronics. it goes from labour intensive to human capital intensive
