ECON 255 Lecture Notes - Lecture 5: Four Asian Tigers, Capital Accumulation, Capital Market
Document Summary
Reading 4 krugman and obtsfeld: east asia (success and crisis) 1970s and 1980s: the 2nd wave included malaysia, thailand, indonesia and china. Common factors for the high-growth economies: 1) high rates of saving which leads to the improvement in education, 2) a more opened policy and more effort to integrate with the global market. South korea: key aspect of growth was due to the government intervention it promoted a more equal distribution of capital among industries. Taiwan and singapore: reliance on mncs having local subsidiaries to operate there. South korea and hong kong: reliance on domestic entrepreneurs. Despite the many factors, at least they can point to some factors that actually help to spur economic growth. Asian weaknesses (3: productivity: rapid growth was mainly due to the increase in production inputs i. e capital and labor but not so in productivity, meaning that east asian didn"t really invest in their technological input.
