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Factor Endowments, Trade Direction, and Growth Performances of the Americas and East Asia in the Nineteenth and Twentieth Centuries

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  • Hongyi Harry Lai

    (University of California at Los Angeles)

Abstract

Factor-endowment based trade with the leading economy helps to explain the differing development performances of the Americas and East Asia in the past two centuries. Between 1830 and 1945, labor-abundant Britain, the most advanced country, traded heavily with land-abundant countries in the Americas, the U.S. in particular. The latter were able to grow faster than was most of East Asia. After WWII, however, with Britain’s decline and the rise of the land-abundant U.S., labor-abundant East Asia traded more heavily with the U.S. and thus engineered faster growth than did land-abundant Latin America. Factor-endowment based trade and economic ties with the secondary advanced economy (first the U.S. and then Japan) played important roles in the pre-WWII growth of Japan, Southeast Asia's growth in the 1970s and the 1980s, and its economic crisis in the mid-1990s.

Suggested Citation

  • Hongyi Harry Lai, 1997. "Factor Endowments, Trade Direction, and Growth Performances of the Americas and East Asia in the Nineteenth and Twentieth Centuries," Development and Comp Systems 9710004, EconWPA, revised 17 Jun 1998.
  • Handle: RePEc:wpa:wuwpdc:9710004
    Note: A revised version; an old and longer version was posted in 10/97. Type of Document - MS Word 6.0 for Win95 or later version; prepared on IBM PC ; to print on HP ; pages: 38 ; figures: 8 tables.
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    References listed on IDEAS

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    1. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
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    8. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    More about this item

    Keywords

    growth; development; trade; factor; endowments; resources; economic performances; developmental policies; world economy; Latin America; America; the United States; U.S.; East Asia; Southeast Asia; Britain; United Kingdom; U.K.; Japan; China; Malaysia;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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