This paper discusses the Flying Geese economic development theory– the way production techniques are introduced to the less developed countries by the highly developed countries. It also describes the development of the East Asian’s economies.
This paper relates that, as this Flying Geese pattern of development progresses, countries in the Asian region become more and more integrated and interdependent. The author states that the Flying Geese model describes how industry passes through five stages: Introduction, import substitution, export, mature and reverse-import stages. The paper concludes that the significance of Flying Geese model in East Asia’s economic development is declining in recent time as high technology is introduced and globalization takes place. Tables.
Table of Contents
Introduction
The Meaning of Flying Geese Model
Evidences of Flying Geese Pattern Development in East Asia.
Significance of Flying Geese Hypothesis in East Asia Economic Development.
High Inflows of FDI and Export Expansion
International Economic Development.
Inter-Industry and Intra-Industry Trade Pattern.
Regional Integration
Declining Significance of Flying Geese Model in Recent Time
Conclusion
Table of Contents
Introduction
The Meaning of Flying Geese Model
Evidences of Flying Geese Pattern Development in East Asia.
Significance of Flying Geese Hypothesis in East Asia Economic Development.
High Inflows of FDI and Export Expansion
International Economic Development.
Inter-Industry and Intra-Industry Trade Pattern.
Regional Integration
Declining Significance of Flying Geese Model in Recent Time
Conclusion
“When reaching export stage, the growth of domestic demand will decline. Exports of the product have begun to increase and imports decline. The strong exports enable the country to import capital goods for continued expansion of production. Inward FDI becomes significant as the same industry in the advanced countries has lost its comparative advantage and has to relocate to developing countries. As the industry gets into its mature stage, production slows down due to increasing costs and intensified competition from late-starting countries.”