Economic Benefits Of Japan And South Korea Essay

1104 Words Dec 14th, 2015 5 Pages
The unparalleled growth of economies in East Asia over the past thirty decades have sparked a lot of interest from economists, with many arguments and explanations attempting to account for the actual dynamics that influenced such growths. Gaining prominence in the late 1970s, the paradigm of export-led growth replaced that of import-substitution, leading to development strategies designed to increase the productive capacities of economies by focusing on foreign countries (Palley 3). Economists have therefore argued that with openness of these economies and their export-led growth, the explanation for the success of countries such as Japan and South Korea might be the comparative advantage theory, political economy benefit, or the theory of growth benefits of trade. These schools of thought might differ when explaining the mechanisms involved in the speedy growth of theses economies, but export-led growth in agreeable terms is a highly controlled development strategy where policies focus on external markets while critically generating economic benefits of openness to the implementing economy. This is done through promoting adoption of best practice, increased product development, and stimulating local firms by exposing them to competition. However, it is only until recently that China has generated much interest as the center of production networks and an exemplary exporter in East Asia by becoming the fastest growing economy in the world over the last two decades as well as…

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