An Initial Integration of Economic Development Strategy for Developing Countries: Case Study of Asian Four Tigers, China and India

Abstract

The purpose of this study is to find out the relationships between the commonly-used strategy of economic development and economic growth. The strategy of economic development of Asian four tigers is saving, public investment, export, labor market competition and the government intervention. However, China and India followed almost the similar ways of country development of Asian four tigers. That is saving public investment, export and government intervention. The strategy is consisted of saving, public investment, export and government intervention. Because of the unavailable data, the government intervention was assumed to be constant. To prove the relationship between the commonly used strategy of economic development for development countries (independent variables) and economic growth of each country (dependent variable), the multiple regression and correlation analysis were the tools of the measurement. The result which produced by the study showed that the commonly used strategy of economic development for developing countries is inextricably linked with the economic growth except public investment of Taiwan that is not associated with economic growth. The second objective of present study is to understand which strategies have more effective influence over the economic growth. The result finds that saving is the most effective influence on the economic growth of each country (except Singapore and India). And then export and public investment, respectively, follow saving. Based on the current research findings, the strategy of economic development, finally, should be applied to other developing countries in order to make economic growth more progressive and society more prosperous.