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Growth Determinants in East and Southeast Asian Economies



Koppers, S., Dingens, S., Klaas, A., Wermuth, H. (Eds.) (1991). Growth Determinants in East and Southeast Asian Economies. Duncker & Humblot.
Koppers, Simon; Dingens, Susanne; Klaas, Alberto and Wermuth, Hans-Erich. Growth Determinants in East and Southeast Asian Economies. Duncker & Humblot, 1991. Book.
Koppers, S, Dingens, S, Klaas, A, Wermuth, H (eds.) (1991): Growth Determinants in East and Southeast Asian Economies, Duncker & Humblot, [online]


Growth Determinants in East and Southeast Asian Economies

Editors: Koppers, Simon | Dingens, Susanne | Klaas, Alberto | Wermuth, Hans-Erich

Schriften zu internationalen Wirtschaftsfragen, Vol. 12


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Already in the 1960s the four $.little dragons$- Hong Kong, Singapore, South Korea and Taiwan started their industrialization moving steadily upwards with increasing growth rates, some of them double-digit in the 1980s. Most significant for these results has been their export-oriented growth strategy capitalizing on low labour costs and opening them up to the world market with all its benefits and pressures. Until today they have attracted quite a lot of foreign investors bringing technology and skills beside the pure capital. Thus, all four countries have reached a more sophisticated level of production and partly even developed into service and financial centres.

Combining these developments with the already advanced Japan, the entire Asia-Pacific Region must be seen as an extremely dynamic area often also mentioned as the $.Pacific Challenge.$- Thus it is of high interest to examine the determinants of growth behind this challenge, behind the economic success.

Because of $.the specific Asian dimension of the success,$- especially the Asian mentality, a transfer of the growth strategy can only be possible to a very limited degree. But the Asian experiences can at least be helpful to the formulation of a country related development strategy showing up generally important growth factors.

The contributors to this book analyze important factors such as development planning, foreign investment, deregulation, government intervention, human capital, finance and banking (service sector), technology transfer and promotion, trade (export promotion), agriculture and regional cooperation. For this purpose experts in Science and Economics report from their experiences.

Table of Contents

Section Title Page Action Price
Laudation 5
Foreword 7
Contents 9
Dean Spinanger: From Sandlots to the Big League: Some Thoughts on Why East Asia Has Been Winning 11
I. Introduction and Overview 11
II. Making It to the Big League: the Essentials 12
III. Beyond the Essentials: Locational Factors 16
IV. Barriers against Exports: A Boon in Disguise? 20
V. Returning to the Introduction: Concluding Remarks 22
VI. References 23
F. Stefan Winter/Sigrid Zirbel: Internationalization and Globalization in the 1990s 29
I. Introduction 29
II. The Asian Challenge 29
III. The Growing Role of Asia in a Global World Economy 30
IV. Changes in the Structure of the Global Economy 32
V. Impact of the 'Pacific Era' 33
VI. New Fonns of International Competition 35
VII. The Future of International Economic Relations – Globalization versus Regionalization 36
VIII. Requirements Placed on a Future International Trade System 38
IX. References 39
Simon Koppers: Development Planning in East and Southeast Asian Economies 41
I. Introduction 41
II. Development Plans 42
III. The Motivation Behind the Plans 42
IV. Drawing up of the Plans 46
1. Complexity and Simplicity 47
2. Subjectivity 48
3. Uncertainty 48
V. lmplementation of the Plans 49
VI. Evaluation of the Plans 51
VII. Final Comments 53
VIII. References 55
Rolf J. Langhammer: Competing for Foreign Direct Investment: The Performance of East and Southeast Asian Countries in the 1980s 59
I. lntroduction 59
II. Asian Countries' Performance in Competition for Foreign Direct Investment 60
lll. The Relative Attractiveness of Asian Host Countries to Japanese Foreign Investment in Selected lndustries 64
IV. Levels and Changes in Japanese Investment in Asian Hosts: Some Stylised Demand-Side Explanations 72
V. Summary 74
VI. References 75
Arnim Kraemer: Industrial Estates in Malaysia – Targets Expressed in the National Development Plans and Their Implementation 77
I. lntroduction 77
II. The Concept "Industrial Estate" 77
III. The Period From Independence to the End of the First Malaysia Plan 80
IV. The Second and Third Malaysia Plan Period 83
V. The Fourth Malaysia Plan Period 85
VI. The Fifth Malaysia Plan Period 87
VII. Concluding Remarks 89
VIII. References 91
Alberto Klaas/Sophia Twarog: Deregulation in the Financial Sector in Indonesia 1983–1990 93
I. lntroduction 93
II. Background 94
III. Specific Deregulation Measures in the Financial Sector 1983-1990 96
1. Banking Sector 96
2. Other Financial Institutions 99
3. Capital Market 99
IV. Results of the Deregulation Measures 101
1. Banking Sector 101
2. Capital Market 102
3. Negative Aspects 104
V. Influence on Investment 106
1. Domestic Investment 107
2. Foreign Investment 107
3. Investment in Manufacturing and Export Sectors 108
VI. Conclusion 110
VII. References 112
Alexander Baum: Capital Market Development in Southeast Asia: Portfolio Investments in Emerging Markets 115
I. lntroduction 115
II. Recent Trends in International Financial Markets 116
III. The Capital Markets in Southeast Asia 119
IV. Portfolio Investments in Stock Markets of the Region 126
V. Summary and Conclusion 129
VI. References 129
Susanne Dingens: Technology as a Growth Determinant – The Special Case of Hong Kong 131
I. Introduction 131
II. General Aspects of International Technology Exchange 132
1. The Technology Market and its Challenges for the NIEs 132
2. Mechanisms of Technology Transfer 136
III. Hong Kong in Transition 138
1. The Changing Hong Kong Economy 138
2. The lndustrial Policy of the Government 141
3. Technology Transfer to Hong Kong 143
4. Technology Promoting Institutions 148
IV. Concluding Remarks 155
References 157
Bettina Muscheidt: Aspects of ASEAN’s Agriculture, Its Contribution to Growth, and Its Relationship to the European Community 159
I. Introduttion 159
II. Agriculture in ASEAN Countries 159
III. The Subsistence Sector in Agriculture 162
IV. ASEAN-EC Trade With Agricultural Products 162
V. EC Development Aid 163
VI. Examples of EC Financial and Technical Assistance in ASEAN Countries 166
VII. Concluding Remarks 167
VIII. References 169
Manfred Pohl: A Farewell to Isolationism? North Korea’s New Strategies 171
I. The Eighties: A Decade of Desaster Comes to an End 171
II. A "Japanese Card"? 173
III. Foreign Debts 175
IV. Apology and Compensation 176
V. Nuclear Safeguards 179
VI. United Germany: North Korea's Gateway to Europe? 181
VII. References 185
Walter Schug: Analysis of the Republic of China’s Foreign Trade and Foreign Trade Policy 187
I. lntroduction 187
II. The Economic System of the Republic of China 188
III. Structural Changes in Foreign Trade 191
IV. Main Elements in Foreign Trade Policy 196
V. Conclusions 198
VI. References 200
Erhard Louven: China’s Foreign Economic Relations: Prospects of the Year 2000 203
I. Introduction: No Country is an Island 203
II. Inward versus Outward Orientation 204
III. The Policy of Opening Up to the International Economy: General Positions 209
IV. The Exchange Rate Regime and the World Economy 210
V. Foreign Investment Policy 211
VI. The Spacial Dimension of Chinese Foreign Economic Relations 212
VII. Concluding Remarks 215
VIII. References 215
Hans Christoph Rieger: Basic Issues of ASEAN Economic Co-operation 217
I. Introduction 217
II. ASEAN's Economic Co-operation 218
III. The Basic Issues of ASEAN Economic Co-operation 223
1. General Trade Strategy 224
2. Competitiveness and Complementarity 227
3. Differences in Stages of Development and Trade Regimes 230
4. Distribution of Gains and Losses 232
IV. Outlook 234
V. References 235
Sigrun Caspary: The Sea of Japan Region – Perspectives of a Regional Cooperation 239
I. A Brief Description of the Region 239
II. The Four Basic Problems to Solve 241
III. The Chinese Open-Door Policy as a First Step 242
IV. "Perestroika"- A New Era for Asia 244
V. The Olympic Games as Promotion of Cooperation 245
VI. Changes in North Korea 247
VII. The Japanese Contribution 248
VIII. Keys for Further Development 250
IX. References 252
Henning von Boehmer/Rainer Emschermann: European Integration: Threat or Promise to East and Southeast Asia? 255
I. Introduction 255
II. Asian-European Trade Relations 256
1. The NIEs 256
2. ASEAN 257
3. Resumée 258
III. Expected Macroeconomic Effects of the 1992 European lnternal Market 258
1. Benefits to both EC-Insiders and EC-Outsiders from the EIM 259
2. Benefits for EC-lnsiders 259
3. Possible Effects for EC-Outsiders 260
4. Implications for East and South East Asia 260
IV. Instruments of the Common Trade Policy 261
1. Remaining National Competences 261
2. Classic Instruments of Trade Policy and their lmplementation 262
3. Harmonization of Minimum Standards 264
4. Bureaucratic Protectionism 265
5. Subventions and Areas Not Included in the GATT 265
V. Diversion of Asian Investments 265
VI. Political Economy of World Trade 266
1. Prisoner's Dilemma 266
2. The Political Decision Making Process 268
3. The Emergence ofTrade Blocks 270
a) The EC 270
b) Adverse Philosophies on Trade Policy 271
c) Other Trade-Associations 272
VII. Concluding Remarks 272
VIII. References 274
Contributors 277