Explanations of East Asian Economic Development
EXPLANATIONS OF THE
ECONOMIC SUCCESS OF EAST ASIA NATIONS:
Introduction
The economic success of the East Asian countries has inspired many economists to study the background of their rapid growth. Interestingly, different economists interpret this success in entirely different ways. During the
1970s and an important part of the 1980s advocates of the neoclassical model argued that growth in East Asia was the result mainly of the market mechanism and the emphasis on export promotion in these countries. Especially since the mid-1980s the neoclassical approach was criticised by economists who stressed that government intervention played a crucial role in the process of economic growth. This paper aims at presenting a survey of the arguments recently put forward by the critics of the neoclassical approach to explain the role of government in the economic success of the countries in East Asia. Such a survey is very useful, since it forms a new breeding ground for the discussion on the role of the government in the economic development of other Developing countries and the countries in Eastern Europe.
Without a doubt East Asia’s economic expansion during the past twenty years is one of the most remarkable economic changes since the Second World War.
Gross national product of the East Asian countries increased by more than five per cent per year in the period 1965-1990, which is considerably larger than that of Latin America (1.8 per cent), sub-Saharan Africa (0.3 per cent), or even the OECD (2.4 per cent). Six of the seven fastest growing economies in the period
1960-1985 (measured on the basis of the average growth of per capita GDP) were East Asian countries. The economic success of these countries has inspired many economists to study the background of this rapid growth. What is rather remarkable in this context is the fact that different economists interpret this success in entirely different ways. During the 1970s and an important part of the 1980s
ECONOMIC SUCCESS OF EAST ASIA NATIONS:
Introduction
The economic success of the East Asian countries has inspired many economists to study the background of their rapid growth. Interestingly, different economists interpret this success in entirely different ways. During the
1970s and an important part of the 1980s advocates of the neoclassical model argued that growth in East Asia was the result mainly of the market mechanism and the emphasis on export promotion in these countries. Especially since the mid-1980s the neoclassical approach was criticised by economists who stressed that government intervention played a crucial role in the process of economic growth. This paper aims at presenting a survey of the arguments recently put forward by the critics of the neoclassical approach to explain the role of government in the economic success of the countries in East Asia. Such a survey is very useful, since it forms a new breeding ground for the discussion on the role of the government in the economic development of other Developing countries and the countries in Eastern Europe.
Without a doubt East Asia’s economic expansion during the past twenty years is one of the most remarkable economic changes since the Second World War.
Gross national product of the East Asian countries increased by more than five per cent per year in the period 1965-1990, which is considerably larger than that of Latin America (1.8 per cent), sub-Saharan Africa (0.3 per cent), or even the OECD (2.4 per cent). Six of the seven fastest growing economies in the period
1960-1985 (measured on the basis of the average growth of per capita GDP) were East Asian countries. The economic success of these countries has inspired many economists to study the background of this rapid growth. What is rather remarkable in this context is the fact that different economists interpret this success in entirely different ways. During the 1970s and an important part of the 1980s