Newly Industrialized Countries Research Articles

Восточноазиатская модель реформ

After the collapse of the colonial system, the countries began to be divided into the first world, comprising capitalist countries, the second world — the countries of socialism, and the third world — the countries that freed themselves of colonial dependence, but not yet determined the path of social development. But it was not so long ago that several of the third world countries made a breakthrough from peasant pre-industrial countries to industrial countries at different stages of development. Accordingly, new industrial countries (NIS) of the first, second, third, and fourth generations emerged. New industrial countries have appeared in different regions and on different continents, they have both specific and common features inherent in the main trends in the development of the world economy. But in this case, the research will be focused on the NIS in the Asian region, which made the "leap" from the third world to the first. Because of this "leap" they are often called "Asian tigers". These are South Korea (Republic of Korea), Singapore, Taiwan (Republic of China), and Hong Kong. Hong Kong is a former British colony, which in accordance with the Sino-British Joint Declaration came under the jurisdiction of the PRC in 1997 and became its special administrative region (SAR). At the same time, Hong Kong lost the right to conduct foreign and defense policy, retaining the right to have its own political and economic system for 50 years. In China, such a model is called "one country-two systems", and Beijing expects to offer it to Taiwan, which it considers to be an integral part of China. Of the four "Asian tigers", Singapore and South Korea are of particular interest to scholars and specialists. How could these initially extremely backward and resource-poor countries become prosperous states in a short span of time? The value of this article is that the author points to the experience of NIS, which could be used in Russia.

FREE ECONOMIC ZONES IN THE MODERN SYSTEM OF FOREIGN ECONOMIC RELATIONS

Today, FEZs exist in states that are different in level and nature of economic development. They are in industrialized countries (IC), in new industrial countries (NIC), in developing countries (DC) and in countries transitioning to a market economy. Their distribution on the planet is very uneven. The process of creating free economic zones is characterized by the greatest dynamism in developing countries. So, if in 1960 there were two of them in this group of countries, in 1975 – 79, 1981 – 96, 1985 – 264. Then by the mid-90s, there were already more than 900 zones. About 10 % of the global commodity circulation passes through the FEZ, and the growth rates of export and import volumes in them are very high. According to experts of the UN Center for Transnational Corporations (TNCs), by the mid-2000s the number of people employed in the FEZ exceeded 3 million people.The task of today is to provide the necessary theoretical and methodological basis for the phenomenon of free economic zones in world economic relations, to generalize the world experience of their creation and functioning in countries with different levels of economic development, and on the basis of a critical analysis of world and domestic practice to ensure the assimilation and successful application of the knowledge gained in practice.

Import substitution strategies in the global economy: lessons for Russia

The world experience of implementation of import substitution strategy is being studied; reveals the essence of the main models; Identify those aspects that will prove useful in modern Russian conditions. The development of import-substituting industries according to the intra-oriented strategy is carried out in order to develop exclusively the domestic market of the country. From the point of view of the national economy, this strategy leads to the preservation of the backlog, primarily in the field of technological and scientific-technical cooperation and prevents the emergence of industries in the economy-locomotives that can ensure the world level of progress. The use of this model of import substitution has become a determining trend in the development of the so-called new industrial countries (NIS).The intra-oriented strategy of import substitution plays a stimulating role in creating a diversified national economy, expanding the production of important goods on its own. The conceptual basis for the implementation of this strategy was the theory of the peripheral economy, developed by a group of Latin American scientists headed by the Executive Secretary of the UN Economic Commission. According to this concept, the demand for products. The use of the designated model of import substitution has become a trend of development of the so-called new industrial countries of Latin America. Another option for the implementation of import substitution policy can be a strategy of foreign-oriented import substitution, which is characterized by the achievement of structural changes in the economy through the replacement of imported components and parts in export products. Implementation of import-substituting policy, according to this model, involves the development of production of national goods on a sufficiently large domestic market, followed by their promotion on the world market.

PURCHASING POWER PARITY TESTS IN COINTEGRATED PANELS: EVIDENCE FROM NEWLY INDUSTRIALIZED COUNTRIES

This paper examines the long-run purchasing power parity (PPP) by testing for unit roots in real exchange rates of 10 newly industrialized countries (NICs) during the period 1980-2013. Alternatively, this paper examines the long-run PPP by evaluating the cointegration between nominal exchange rates and price ratios of the NICs. The Pesaran (2007) unit root test results support the evidence of long-run PPP during the period 1980-1990; however, during the other sub-periods, the results invalidate the long-run PPP. We find that the evidence against the unit root hypothesis is stronger for larger than small samples, for monthly than quarterly data. Moreover, the results suggest the mere evidence of strong PPP and also suggest that the speed at which the real exchange rates restore to equilibrium is relatively slow during the period 1991-2000.

The OECD and the world market: antecedents of deep marketization

ABSTRACTThis paper documents the commitment of the OECD from its creation in 1961 to the continuous development of the world market along liberal lines. In doing so, it details a significant effort to promote what might be called proto-strategies of deep marketization across its ‘Northern’ advanced economy membership. These were articulated at key junctures: in its earliest years, then in response to the rise of the NICs (Newly Industrialized Countries) in the 1970s, again in the context of what it diagnosed as the crisis of the welfare state in the 1980s, and in a clutch of studies in the mid-1990s that anticipated and welcome the rise of China and other emerging economies. The argument made was always that sustainable growth in the advanced countries and the continued development of the world market as a whole could best be achieved if OECD members would abstain from protectionism, embrace competition and reform labour markets and social welfare in order to maintain and enhance their competitiveness in the global economy. Particular attention is drawn to the 1994 Jobs Study, which addressed the need for welfare and labour market reform in terms that foreshadowed the universal policies of deep marketization in evidence today.

Playing catch-up: how less developed nations can jump-start technology innovation

Purpose This study aims to investigate the historical technological catch-up processes with particular attention to the role of windows of opportunity (WoO). As Industry 4.0 becomes the benchmark of many latecomer countries, this paper may provide guidelines to both policymakers and business practitioners. For clarifying how to catch up with the incumbents and leaders, the authors summarize the lessons based on the historical observations to conclude the pathways for latecomers who aim to reduce the gaps to leaders and manage catch-up. This study enriches the literature of catch-up from a holistic view with fresh insights into how and where to catch up. Design/methodology/approach The authors analyze the technological catch-up processes emerged in advanced industrial powers, newly industrialized countries (NICs) and emerging economies (EEs). By categorizing the countries into three kinds, they summarize the processes of catch-up along with the industry evolutions. Moreover, they explore how WoO may facilitate the catch-up processes from one stage to the next in above-mentioned categories. Doing so helps to further examine how technological catch-up and WoO interplay and differ among countries. Then, the authors further investigate the latecomers and incumbents and conclude the target choosing, path setting and direction selecting when implementing a catch-up strategy. Findings This study shows that technological catch-up emerged first in advanced industrial powers (AIPs), then in NICs and recently in EEs. Technological catch-up processes in AIPs and NICs take longer time than those in EEs. WoO from policy, market and technology usually collaboratively facilitate the technological catch-up processes in AIPs and NICs. However, in EEs, single WoO can lead to a successful catch-up. The authors further summarize the directions and pathways of catch-up: AIPs and NICs are normally considered by some latecomers to catch up with, while EEs are not. Originality/value This study is among the first to systematically review the historical developments of industry evolutions by focusing the technological catch-up based on the different categories of countries: AIPs, NICs and EEs. Moreover, the authors are also among the first few integrating the WoO and technological catch-up processes in different kinds of countries. To the best of the authors’ knowledge, they are also one of the pioneers who highlight the directions and pathways of latecomers and target choosing to catch up with. They also explore the possibility of selecting EEs as catch-up targets.

The Colonial Land Survey Project and the 'Mystery of Capital' in the Korean Take-Off

This paper tries to apply the scheme of the “mystery of capital” suggested by de Soto(2003) to the economic take-off of Korea, focusing on its colonial history before 1945. Thereby the mystery of the newly industrialized countries (NICs)s success could be also addressed. The question is how could the four tigers-NICs get out of the “middle income trap”, while other developing economies could not. This study reviews the social and economic aspects of the Colonial Land Survey Project carried by Japan in Korea and asks whether it can meet the preconditions for the “property representation system” by de Soto. This study finds that the Korean industrialization in the colonial period has been well described by the ‘developmental state’ approach, but the property representation system can reveal the key role of property rights as an institution in the economic take-off, focusing on its incentive function.

A study on material requirement project implementation in Thai automotive organizations

ln response to ever-increasing regional and global competition, automotive manufacturing companies in Thailand are looking to improve the efficiency and effectiveness of their operations through the adoption of sophisticated manufacturing planning and control systems in general, and Material Requirements Planning (MRP) systems in particular. Despite its growing popularity, an in-depth review of the academic literature has revealed no systematic studies of how, and how successfully, Thai automotive manufacturers have managed to implement MRP in practice. Indeed, there appears to be general dearth of studies of this kind, at least as far as newly-industrialising countries are concerned. This study begins this paper by presenting a brief literature review on MRP implementation, first in advanced industrial economies and then – as far as the evidence allows – in newly-industrialising countries. The major part of the paper concerns our empirical investigation of the way in which MRP systems are being implemented in Thai automotive manufacturing companies. The investigation is based on a major questionnaire survey of about 120 companies, of which about 67 companies are currently using some kind of MRP system. In addition to more general questions on the nature of the companies concerned and the production processes used, the survey posed specific questions on the (actual or expected) costs and benefits to be obtained from MRP, as well as the implementation process used. The findings from the survey suggest that MRP implementation in Thai automotive companies is relatively similar to implementation in manufacturing companies in the newly industrialised countries; however, there are some dissimilarities to MRP implementation in Western countries.

Comparison of Economic and Education Development in Singapore and South Korea

This analysis addresses the developing environment backed by rapidly growing higher education in two countries, South Korea (Korea for short) and Singapore, in which education has roots in Confucianism. The focus lies on the analysis and comparison of the economic development in these two newly industrialized countries (NIC), the progressive changes in research and development and their unique ways towards the establishment of knowledge-based economy. Both countries inherited a poor economic environment after gaining full independence but achieved rapid economic growth. Recently, both countries have been driven by the desire to take a leading role in creating knowledge-based economy, to build competitive advantage within the region and to sustain their high levels of development. Consequently, the governments had great ambitions to invest in research and development. Through the analysis of the development the article aims to reveal comparison of development stages concerning both economy and education with their outcomes and most recent challenges.

Innovations for reaching the green sustainable development goals \u2013where will they come from?

Reaching the sustainable development goals needs innovations. This paper addresses the dynamics of green energy and resource efficiency innovations, and looks at the positioning of countries from the North and emerging economies. We use indicators for both general innovation capabilities and specific green technology capabilities. Data on general innovation capabilities reveal that the traditional OECD countries, by and large, still possess advantages compared to Newly Industrializing Countries (NICs). Literature and Patent indicators reveal that the innovation dynamics are particularly high for publications. Literature and exports indicators reveal that the South has been catching up substantially. With regard to patents, some countries of the South are catching up, but the North is still cleary leading. A detailed analysis of co-patenting and country-to-country trade data reveals a more differentiated picture: Leading countries from Europe such as Germany as still specializing on serving the markets of traditional OECD countries. Japan and Korea are very reluctant with regard to co-patenting, but specialize in exporting to China. South-South trade in green technologies is the fastest growing market segment. However, countries of the South are pursuing a differentiated strategy: Mexico is highly integrated into the US economy. Singapore and South Korea have been catching up and provide technologies especially for China. China itself is following a double strategy, with absorbing technology from the North in order to compete on markets of the North on the one hand, but increasingly specializing on becoming lead supplier for countries of the South on the other hand. The other technology providers from the South are mainly specializing in supplying other countries from the South. Thus, a segmentation of the market is likely, with green sustainability innovations in the South more likely originating in the South as well, and China being an important country to adapt knowledge from the North to the needs of the South.

SAVING–INVESTMENT DYNAMICS AND CAPITAL MOBILITY IN THE NEWLY INDUSTRIALIZED COUNTRIES

This paper examines the dynamics of saving–investment (S–I) relationship in a group of 10 newly industrialized countries (NICs) over the period from 1970 to 2010 using a panel error correction model. By applying the Pedroni and Westerlund cointegration tests, we find that the saving and investment are cointegrated. We apply the fully modified OLS and dynamic OLS to a set of panel error correction models to estimate the short-and long-run relationship between S–I rates and interest rate differentials. We find that the degree of capital mobility is higher when the NICs are more open to their capital control policies after 1980s.

Toward Technology-Sensitive Catching-Up Policies: Insights from Renewable Energy in China

The voluminous literature on industrial catching-up in Southeast Asian countries has regularly argued that successful catching-up largely depended on a committed state, which orchestrated industry development with a relatively uniform set of policies, including R&D support, subsidies, trade restrictions, and local content requirements. In contrast, recent contributions from the technology lifecycle literature have argued that policies should be tailored to differing technological characteristics in industries for mass-produced standardized goods, complex engineered products, and—as we argue—complex product systems (CoPS). In this paper, we extend this argument by introducing a set of separate policy mixes for each industry type, which appears most capable of providing the key resources required for catching-up: knowledge, market access, financial investment and technology legitimacy. This framework is used to analyze catching-up patterns in China’s wind, solar PV, and biomass power plant industries, drawing mainly on policy documents and 106 interviews with key industry actors. We find that traditional top-down catching-up policies played a decisive role in the development of China’s wind industry, but were of limited importance in the early solar PV industry, and resulted only in a limited period of rapid growth in the biomass power plant industry. The relative progress achieved in these three industries is not related to top-down policy guidance alone, but also to private sector initiative, international interdependencies, and flexibility in adapting policy mixes to each industry’s technological characteristics. These results suggest that policy makers in newly industrializing countries (NICs) should avoid drafting generic sector plans, but should tailor plans to individual industries, and respond to changing policy support needs as technological capacities and global competitiveness develop.

THE MAJOR FACTORS WHICH CONTRIBUTED TO THE TRANSFORMATION OF TAIAN FROM A PRIMITIVE AGRICULTURAL SOCIETY TO ONE OF THE NWLY INDUSTRIALIZING COUNTRIES(NICS) IN ASIA

The major factors which contributed to the transformation of Taiwan from a primitive agricultural society to one od the newly industrializing countries (NICS) in Asia.

Comment on “Connectivity in East Asia”

Comment on “Connectivity in East Asia”

Effect of earnings management on economic value added: A cross-country study

This paper addresses the association between earnings management and economic value added (EVA) among nations of the North American Free Trade Agreement (NAFTA), Association of Southeast Asian Nations (ASEAN), European Union (EU), and those classified as a newly industrialized country (NIC). Furthermore, an analysis of the earnings management behaviour is presented based on data from 2009 to 2013. The results indicated that a significantly inverse relationship exists between earnings management through either discretionary accruals (DAs) or real earnings management (REM) activities and EVA in NAFTA and EU nations. Moreover, a significantly positive relationship exists between earnings management through either DAs or REM and EVA in ASEAN and NIC nations. In addition, REM activities exhibit greater explanatory power among these nations.

Current account dynamics and capital mobility in the newly industrialized countries

This paper examines the current account dynamics in a group of ten newly industrialized countries (NICs) during the period 1980–2012 using a panel error-correction model. The model is also used to empirically test whether the degree of capital mobility is positively related to financial openness. The Chin-Ito (2006, 2008) financial openness index is used to classify the countries into different groups, and we place the countries in one group that are similar to each other in terms of their financial openness. Furthermore, to evaluate the extent of capital mobility over the different period from 1980 to 2012, the total period under study is divided into three sub-periods. The estimation results indicate that there exist long-run equilibrium relationships between domestic saving, investment, and current account in all groups regardless of their degree of financial openness. We find that more openness in terms of the capital account is associated with a higher degree of capital mobility in the case of NICs. The empirical result also indicates that the degree of capital mobility is higher in the first and third sub-period.

Towards the Detroit of Asia: Empirical research insights of Thailand's OEM strategy

The automotive industry is one of the strategic clusters of Thailand. This study explores Thailand's national innovation system (NIS) strategy and cluster policies in driving the automotive industry towards the Detroit of Asia. The analysis of automotive cluster is based on Porter's Diamond Model and NIS framework. Unlike other Asian countries that competed and moved forward with the own brand manufacture (OBM) strategies, Thailand took a different NIS approach in competition to become the automotive manufacturing hub of Southeast Asia. The results provide lessons and insightful strategic implications for other newly industrialized countries (NICs) attempting to move up the technological ladders.

Lessons from Taiwan's Economic Development

Taiwan changed from a traditional agriculture society into an industrialized modern country within roughly one century. This fast development was regarded as a model for developing countries. Taiwan together with Hong Kong, Singapore, and South Korea became known as the Four Asian newly industrialized countries (NICs) in the 1970s, recognized for their successful economic development. However, on its way to becoming a high-income developed country, Taiwan encountered a number of difficulties. Some of them might have been caused by the political threat from China, but there were other challenges that were common to many middle income countries. Taiwan's experiences of the latter may offer lessons to other developing countries. The difficulties for Taiwan caused by China may offer more alarming lessons for countries—including developing countries—that face growing interactions with China.

Investigating Quality Perceptions of International Services by Chinese Consumers

Consumers are known to use the country of origin (COO) of a product to infer the quality of products. Products of technologically advanced countries such as the United States and Germany are known to enjoy positive country-of-origin effects. Conversely, products made in the developing countries typically suffer from negative COO effect. While this influence of COO is widely recognized for products, the same cannot be said about services. Only a handful of studies have empirically investigated the relationship between COO and perceived service quality. Additionally, most of these studies in this research paradigm are undertaken in developed markets; hence, their findings cannot be extrapolated to the newly industrialized countries (NICs) that offer tremendous market potential for global services. It has, therefore, become imperative for multinational companies to understand if and how consumers in the major NICs use COO and other cues to infer service quality. This insight is critical in developing effective pricing and promotion strategies for these markets. Using data collected from consumers in Beijing in the People's Republic of China, we demonstrate significant COO effect on two service categories: hotels and restaurants. We also highlight how these research findings will help managerial decisions about pricing and promotion. © 2015 Wiley Periodicals, Inc.

Are The Kaldor's Laws Valid? Panel Data Analysis under Cross Section Dependency for NIC Countries.

Abstract In this study, the validity of the Kaldor's Laws in NIC (Newly industrialized countries) is tested and investigated via second generation panel data methods with structural break under cross section dependency in 1965-2012 periods and annual data are used. In analysis firstly, CrossSectionally Dependency (CD) in country was examined via CDLM test (Cross Sectionally Dependency Lagrange Multiplier) developed by Pesaran (2004) . Stationary of series was searched via CADF test (Cross-Sectionally Augmented Dickey-Fuller) developed by Pesaran (2006) considering CD. Cointegration relationship among series was examined the panel cointegration test with multiple structural breaks developed by Basher and Westerlund (2009) . As a result of analysis, cointegration relationship between the series was determined. Also, the validity of the Kaldor's Law was determined.