Comparative Analysis of Economic Growth in North East and South East Asian Economies

Running Head: ECONOMICS OF THE PACIFIC RIM
Economics of the Pacific Rim
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1ECONOMICS OF THE PACIFIC RIM
The article named “Initial Conditions and Miraculous Growth: Why is South East Asia
Different From Taiwan and South Korea?” aims to make a comparative analysis of rapid
economic growth between North East and South East Asian economies. The author of the article,
Anne Booth attempts to figure out sources of growth between these two group of nation. The
economies of Indonesia, Thailand and Malaysia are discussed to represent growth of South East
Asian nations. The representative nations chosen from North East Asia include Taiwan and
South Korea. Because of colonial legacy growth history of Taiwan and South Korea is related to
Japan.
The article identifies driving forces behind economic growth in the chosen nations of
North East and South East Asia. In the North Asian growth model the main factors contributing
to achieve a faster growth rate include accumulation of human capital, relatively equal
distribution of wealth and income, the dominant role played by government and bureaucracies,
relatively high physical investment and growth of export. In case of growth in South East Asian
nation the initial factors though seem to be similar but they differ in number of ways. Like, North
East Asia high investment, export growth and bureaucracy are import factors behind rapid
economic growth. So far as access to natural resource is concerned South East Asian nations
enjoy a greater access to land and natural resources as compared to North East Asian countries
(Booth, 2001). Taiwan and South Korea are far ahead of South East Asian nations in terms of
educational facilities and income distribution. Despite experiencing a relatively fast growth rate
many of the South East Asian countries marked a break to their growth path. This raised concern
regarding sustainability of growth in these nations.
This article provides knowledge about growth history of East Asian nations. It identifies
most of the factors responsible for astonishing growth experience of these countries. By