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Can East Asia Compete : Innovation for Global Markets

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  • Shahid Yusuf
  • Simon J. Evenett
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    Abstract

    East Asian economies are at different stages of development, but to preserve-and to increase-their competitiveness through innovation and the opportunities presented by information and communication technologies (ICT), they need to move quickly to frame and implement policies in five areas. Reform and restructuring of the banking system are matters of priority: Second, corporate governance in East Asia has lagged where management skills have fallen behind, and the pressure on managements to pursue strategies aimed at maximizing shareholder value are often weak. Policies to build institutions, both legal and financial, that shore up shareholders' rights and sharpen the market for corporate control would significantly augment management capabilities. Third, in an increasingly knowledge-based economy, the supply of workers with the requisite skills and penchant for creativity will determine how much innovation takes place and how it is used to enlarge market shares. The situation requires reinforcing secondary and tertiary education, which influence analytical skills and the aptitude to innovate. Fourth, although computer use in East Asia is spreading and telecommunications facilities are improving daily, e-business and e-commerce are greatly hampered by the inadequacy of supporting services such as secure credit card transactions, fulfillment, logistics, and legal services. Finally, trade liberalization, preferably multilateral trade reform, needs to be actively pursued.

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    Bibliographic Info

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    This book is provided by The World Bank in its series World Bank Publications with number 15226 and published in 2002.

    ISBN: 0-8213-4998-8
    Handle: RePEc:wbk:wbpubs:15226

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    Related research

    Keywords: Economic Theory and Research Macroeconomics and Economic Growth - Knowledge Economy Environmental Economics and Policies Education - Education for the Knowledge Economy Information and Communication Technologies - ICT Policy and Strategies;

    References

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    1. Miller, Stephen M. & Upadhyay, Mukti P., 2000. "The effects of openness, trade orientation, and human capital on total factor productivity," Journal of Development Economics, Elsevier, Elsevier, vol. 63(2), pages 399-423, December.
    2. Stephen Nickell, 1993. "Competition and Corporate Performance," CEP Discussion Papers, Centre for Economic Performance, LSE dp0182, Centre for Economic Performance, LSE.
    3. Ashoka Mody & Susmita Dasgupta & Sarbajit Sinha, 1999. "Japanese multinationals in Asia: Drivers and attractors," Oxford Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 27(2), pages 149-164.
    4. John McLaren, 2000. ""Globalization" and Vertical Structure," American Economic Review, American Economic Association, American Economic Association, vol. 90(5), pages 1239-1254, December.
    5. Theodore H. Moran, 1998. "Foreign Direct Investment and Development: The New Policy Agenda for Developing Countries and Economies in Transition," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 53, July.
    6. Mazumdar, Joy, 2001. "Imported machinery and growth in LDCs," Journal of Development Economics, Elsevier, Elsevier, vol. 65(1), pages 209-224, June.
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    Cited by:
    1. Nagy Hanna & Christine Qiang, 2010. "China’s Emerging Informatization Strategy," Journal of the Knowledge Economy, Springer, Springer, vol. 1(2), pages 128-164, June.
    2. World Bank, 2005. "Economic Growth in the 1990s : Learning from a Decade of Reform," World Bank Publications, The World Bank, The World Bank, number 7370, August.
    3. World Bank, 2007. "Building Knowledge Economies : Advanced Strategies for Development," World Bank Publications, The World Bank, The World Bank, number 6853, February.

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