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Title: |
The Determinants and Prospects of Economic Growth in Asia |
| Author: |
Radelet, Steven; Sachs, Jeffrey; Lee,
Jong-Wha |
| Author
Affiliation: |
US Dept of Treasury; Harvard U; Korea U |
| Source: |
International Economic Journal, Autumn 2001, v. 15, no. 3, pp. 1-29 |
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Publication Date: |
Autumn 2001 |
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Abstract: |
This paper analyzes Asia's growth
experience in a broad historical and international context. East Asian
countries grew faster than the rest of the world for four key reasons:
they had substantial potential for catching up, their geography and
structural characteristics were by-and-large favorable, demographic
changes worked in favor of more rapid growth, and their economic
policies and strategy were conducive to sustained growth. Although the
financial crisis of 1997 abruptly brought a halt to Asia's period of
robust growth, there was little in Asia's fundamental growth strategy
that inevitably led to the crisis. The key to the crisis was too much
short-term capital flowing into weak and under-supervised financial
systems. This suggests that with better financial management and a
return to the core policies that resulted in rapid growth, the East
Asian economies can again return to sustained growth. |
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