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Does a Leapfrogging Growth Strategy Raise Growth Rate? Some International Evidence

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Author Info

  • Wang, Zhi

    ()
    (United States International Trade Commission (USITC))

  • Wei, Shang-Jin

    ()
    (Columbia University)

  • Wong, Anna

    ()
    (University of Chicago)

Abstract

While openness to trade is a well-recognized hallmark of the Asian growth model, another component of the model is a leapfrogging strategy—the use of policies to guide industrial structural transformation ahead of a country's factor endowment. Does the leapfrogging strategy work? Opinions vary but the evidence is scarce in part because it is more difficult to measure the degree of leapfrogging than the extent of trade openness. We undertake a systematic look at the evidence both across countries and subregions within a large regional Asian economy to assess the efficacy of such a strategy. We conclude that there is no strong and robust evidence that this strategy works reliably.

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Bibliographic Info

Paper provided by Asian Development Bank in its series Working Papers on Regional Economic Integration with number 47.

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Length: 52 pages
Date of creation: 01 Apr 2010
Date of revision:
Handle: RePEc:ris:adbrei:0047

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Keywords: growth; trade openness; leapfrogging;

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  1. James Feyrer, 2009. "Trade and Income -- Exploiting Time Series in Geography," NBER Working Papers 14910, National Bureau of Economic Research, Inc.
  2. Dreher, Axel & Lamla, Michael J. & Lein, Sarah M. & Somogyi, Frank, 2009. "The impact of political leaders' profession and education on reforms," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 169-193, March.
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  7. Ju, Jiandong & Lin, Justin Yifu & Wang, Yong, 2009. "Endowment structures, industrial dynamics, and economic growth," Policy Research Working Paper Series 5055, The World Bank.
  8. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
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Cited by:
  1. Söderbom, Måns & Weng, Qian, 2012. "Multi-product firms, product mix changes and upgrading: Evidence from China's state-owned forest areas," China Economic Review, Elsevier, vol. 23(4), pages 801-818.

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