Moving Up The Ladder: Development Challenges For Low And Middle-income Asia

by Shigesaburo Kabe, Ryuichi Ushiyama, Takuji Kinkyo, Shigeyuki Hamori

Overview

Besides export expansion, a growing middle class in Asia has contributed to the area's economic expansion, providing Asian countries with a window of opportunity to leap from low/middle income levels to high income levels. It may sound easy for these countries to run up the ladder of economic growth, but the potential risks of quickly shifting from low/middle to high income levels are often overlooked. Careful studies in history reveal that the experience of moving up the ladder of economic growth has varied among countries.This book explores (1) the current state of Asian economies and 2) the conditions or policy counter-measures that lead to higher income levels under changing external circumstances. This is illustrated through case studies on five Asian economies, with emphasis on their structural problems. It also aims to paint a comprehensive picture of necessary policies, which will encourage Asian countries to move up the ladder of growth.

Product Details

ISBN-13:	9789814723565
Publisher:	World Scientific Publishing Company, Incorporated
Publication date:	03/23/2016
Pages:	268
Product dimensions:	6.00(w) x 9.00(h) x 0.63(d)

Table of Contents

About the Editors xiii

Introduction xv

Part I Current Status and Development Challenges for Asia 1

Chapter 1 Current Situation and Challenges of Asia's Middle-Income Economies Ryuichi Ushiyama 3

1 Introduction 3

2 The current situation of the Asian economy 4

3 The "middle-income trap" 8

4 "Trap" and emerging Asia 12

5 Why a country falls into the "trap" and how to overcome the "trap" 15

6 Changes in environment 17

7 Challenges and measures for each country 19

7.1 Malaysia 20

7.2 China 21

7.3 Thailand 22

7.4 Vietnam 23

7.5 India 24

8 Conclusion 24

References 25

Chapter 2 Determinants of Economic Growth in East Asia: A BMA Approach Hiroyasu Hasegawa Shigeyuki Hamori 29

1 Introduction 29

2 Empirical techniques 31

3 Data 32

4 Empirical results 34

5 Conclusion 37

References 37

Part II Common Policy Issues in Asian Countries 39

Chapter 3 Industrial Structural Change and Productivity Growth in the Era of Global Value Chains (GVCs) Fumihide Takeuchi 41

1 Introduction 41

2 Industrial structural upgrading in the era of GVCs 43

2.1 Expansion of GVCs in the 2000s 43

2.2 Industrial structural upgrading in Asia and other economies 44

2.3 Gross statistics-based comparative advantage versus net statistics-based comparative advantage 46

2.4 Appropriate indicator to measure industrial structural upgrading in the era of GVCs 48

3 Econometric analysis 50

3.1 International outsourcing and productivity 50

3.2 Data 52

3.3 Empirical methodology and estimation results 53

3.4 Index to measure industrial structure upgrading 56

4 Conclusions 58

References 59

Chapter 4 Financial Development, Openness, and Growth Performance Wang Chen Takuji Kinkyo 61

1 Introduction 61

2 The current state of financial development in East Asia 63

3 Financial development, openness, and growth performance 66

3.1 Econometric method and data 66

3.2 Estimation results 68

4 Conclusion 75

References 78

Chapter 5 Human Resource Development in Asia: Expected Role of Higher Education Shigesaburo Kabe 81

1 Overview of human resource development and economic development 81

2 Increasing expectations for higher education: Factors enhancing the significance of higher education 83

2.1 Globalisation 84

2.2 Increasing populations and economic power: China and India 85

2.3 Low fertility and aging populations 86

3 The current situation of high education in Asia 89

4 Expected role of higher education 92

5 Conclusion 96

References 97

Part III Case Studies: Current State and Challenges of Five Asian Countries 101

Chapter 6 Affirmative Action and Transformation in Malaysia Hwok-Aun Lee 103

1 Introduction 103

2 Affirmative action: Concept and Malaysia context 104

2.1 Defining affirmative action 104

2.2 The new economic policy (NEP) 105

2.3 Affirmative action and transformation 107

3 Affirmative action programs 109

3.1 Higher education 109

3.2 High level occupations 112

3.3 Managerial and enterprise development 112

3.4 Equity and wealth ownership 113

4 Affirmative action outcomes 114

4.1 Higher education 115

4.2 High level occupations 117

4.3 Managerial and enterprise development 119

4.4 Equity and wealth ownership 120

5 Current policy discourses 121

6 Conclusion 123

References 124

Chapter 7 Vietnam: New Doi Moi: Strategy and Priorities of Development Policies for Lower Middle Income Country Nguyen Cao Due 129

1 Overview of current economic situation in Vietnam 129

1.1 Current macro economic situation of Vietnam: 2007-2014 129

1.2 Brief introduction of three biggest challenges of Vietnam 131

2 The process of Doi Moi policy and its evaluation and challenges 131

2.1 The objective and content of Doi Moi policy in Vietnam 131

2.2 Performance of Doi Moi policy in Vietnam 132

2.3 Evaluation of Vietnam's Doi Moi policy 140

2.4 Challenges of Doi Moi policy under Vietnam's new context 142

3 New renovation policy: its objectives, contents, and evaluation 142

3.1 Vietnam's new renovation policy 142

3.2 Evaluation of Vietnam's new renovation policy 147

3.3 Challenges of the new renovation under the new context 149

3.4 Perspectives of the new renovation to avoid middle-income trap 150

4 Conclusion 150

References 152

Chapter 8 Thailand: How to Consolidate Social Security Systems: Universal Healthcare/Pension Systems Worawan Chandoewrit Tirnud Paichayontvijit Yos Vajragupta 155

1 Overview of the current economic situation in Thailand 156

2 Challenges for further development of the Thai economy 160

3 Universal health care coverage 163

3.1 Moving from targeting programs to an entitlement program 165

3.2 The issue of inequity 172

4 Public pension for elderly 176

4.1 Social assistance program for the elderly 178

4.2 Saving for retirement of workers in the informal sector 179

5 Conclusions 180

References 181

Chapter 9 China: Economic Structure Change and Outward Direct Investment (ODI) Yongzhong Wang Guoxue Li Bijun Wang 183

1 Introduction 183

2 Chinese economy: Facts, challenges, and prospects 185

2.1 China's economic growth, trade and investment 185

2.2 China's inward and outward foreign direct investment (FDI) 186

2.3 China's FX (foreign exchange) reserve accumulation and outward investment return 187

2.4 The challenges of Chinese economy 189

2.5 The new normal state of Chinese economy 190

3 Chinese ODI's facts, challenges and policy suggestions 192

3.1 Investor, industry and destination 193

3.2 Challenges and risks 197

3.3 Policy suggestions 199

4 Outward FDI, the extension of production chains and upgrading of China's GVCs 202

4.1 The connotation of upgrading of GVCs 202

4.2 China's "world factory" position in a dilemma 203

4.3 The extension of production chains: A solution to the dilemma 206

4.4 The ways to develop multinational diamond model 209

References 213

Chapter 10 The Role of Judiciary in India's Economic Development Sukanya Natarajan 215

1 Introduction 215

2 Current state of the Indian economy: Developmental challenges and economic reform in India 216

3 Investment climate in India and make in India policy 217

4 Legal institutions and economic growth in India 219

4.1 Judicial reforms in India 222

4.2 Judicial accountability 226

5 Alternate path of east Asia 232

6 Conclusion 236

References 237

Index 241