1.The central argument of the Asiaphoria by Lant Pritchett and Larry Summers
Asiaphoria was first defined by Lant Pritchett and Larry Summers (2014) as a view that Asian Giants, especially China and India will increasingly shape and dominate the global economy. Although many scholars hare the idea that Asian Giants will continue to grow at high growth rate, like Justin (2016) and Pradeep (2015), let alone similar claim from World Bank, Pritchett and Summers do not agree with Asiaphoria and claim that growth rate of the Asian Giants’ GDP will decrease.
To start with, Pritchett and Summers argued that when predicting past performance should not be used to predict the future performance and proposed the regression to mean model which is empirically …show more content…
However, I have my concerns with Pritchett and Summers’ definition of the mean. The mean should be calculated accurately for the Asian Giants and should be time sensitive, i.e. only growth rate after the 1980s should be included.
To start with, the size of Asian Giants, both concerning geographical area and population scale means that the growth processes can be entirely different to other countries in the world (Alan Winters, 2007).
Subsequently, the culture of Asian Giants, including the entire Asian is also no way similar to that of American, European or African culture, which will divert the growth path from the paths of other countries in the world. For example, as Pritchett and Summers mentioned, Singapore, although being one of the wealthiest countries in the world, is another example of low democracy. So, it is arguable that the world means does not apply to the Asian …show more content…
It is mainly due to the increase in the sales in APAC, especially China and India. In the Annual Report, VW put the development of sustainable vehicles as the top strategy while recognising APAC, especially China and India as the focus markets for passenger car markets, due to both the volume and the growth rate of the passenger car markets in the two countries.
Firstly, according to Pritchett and Summers’ arguments, China and India are both expecting the deceleration concerning economic growth. Under this circumstance, VW should adjust the strategies in China and India to be less aggressive regarding pushing for higher sales number. However, considering the market size, even a decreased growth rate should still put China and India into their top passenger car markets in terms of volume. Thus it is of vital importance that VW takes a defensive position and come up with strategies to enhance the loyalty among their customers and also to promote the lower-end
Asiaphoria was first defined by Lant Pritchett and Larry Summers (2014) as a view that Asian Giants, especially China and India will increasingly shape and dominate the global economy. Although many scholars hare the idea that Asian Giants will continue to grow at high growth rate, like Justin (2016) and Pradeep (2015), let alone similar claim from World Bank, Pritchett and Summers do not agree with Asiaphoria and claim that growth rate of the Asian Giants’ GDP will decrease.
To start with, Pritchett and Summers argued that when predicting past performance should not be used to predict the future performance and proposed the regression to mean model which is empirically …show more content…
However, I have my concerns with Pritchett and Summers’ definition of the mean. The mean should be calculated accurately for the Asian Giants and should be time sensitive, i.e. only growth rate after the 1980s should be included.
To start with, the size of Asian Giants, both concerning geographical area and population scale means that the growth processes can be entirely different to other countries in the world (Alan Winters, 2007).
Subsequently, the culture of Asian Giants, including the entire Asian is also no way similar to that of American, European or African culture, which will divert the growth path from the paths of other countries in the world. For example, as Pritchett and Summers mentioned, Singapore, although being one of the wealthiest countries in the world, is another example of low democracy. So, it is arguable that the world means does not apply to the Asian …show more content…
It is mainly due to the increase in the sales in APAC, especially China and India. In the Annual Report, VW put the development of sustainable vehicles as the top strategy while recognising APAC, especially China and India as the focus markets for passenger car markets, due to both the volume and the growth rate of the passenger car markets in the two countries.
Firstly, according to Pritchett and Summers’ arguments, China and India are both expecting the deceleration concerning economic growth. Under this circumstance, VW should adjust the strategies in China and India to be less aggressive regarding pushing for higher sales number. However, considering the market size, even a decreased growth rate should still put China and India into their top passenger car markets in terms of volume. Thus it is of vital importance that VW takes a defensive position and come up with strategies to enhance the loyalty among their customers and also to promote the lower-end