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Significance of Development Stage Theory for Explaining Industrial Growth Pattern between Asian NICs and Selected Advanced Economies

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  • Chang Woon Nam

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Abstract

The East Asian miracle was real. Prior to the 1997 economic and currency crises, Asian NICs — Hong Kong, Korea, Singapore and Taiwan — achieved remarkable annual GDP growth. In these countries the overall economic performance was significantly determined by the industrial development triggered by changes in domestic demand, increases in FDI, intensive innovation efforts of indigenous firms, and export expansion of manufactured goods. Furthermore, fast economic growth and active state interventions like those adopted in most NICs were accompanied by various structural changes in the industrial sector. This study examines the applicability of the development stage theory for explaining the growth dynamics of industrial production in Asian NICs for the period 1980-95 and compares their specialisation pattern with that of more advanced economies like Japan, West Germany and the US.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2002/wp-cesifo-2002-02/cesifo_wp662.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 662.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_662

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Keywords: development stage theory; industrial growth and specialisation; Asian NICs; Japan; West Germany; the US;

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  1. Heitger, Bernhard & Schrader, Klaus & Bode, Eckhardt, 1992. "Die mittel- und osteuropäischen Länder als Unternehmensstandort," Open Access Publications from Kiel Institute for the World Economy 760, Kiel Institute for the World Economy (IfW).
  2. Kojima, Kiyoshi & Ozawa, Terutomo, 1985. "Toward a Theory of Industrial Restructuring and Dynamic Comparative Advantage," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 26(2), pages 135-145, December.
  3. Syrquin, M. & Chenery, H.B., 1989. "Patterns Of Development, 1950 To 1983," World Bank - Discussion Papers 41, World Bank.
  4. Kojima, Kiyoshi, 1975. "International Trade and Foreign Investment : Substitutes or Complements," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 16(1), pages 1-12, June.
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