Evidence of the Correlation Between Trade and Development in the East Asian Emerging Economies

The growth in the East Asian economies has been largely driven by an increase in exports, especially with the industrialized countries of North America, Japan and Europe.  In the process, these countries have acquired the technoloigy required to shift from the production and export of agricultural products and labor intensive manufacturers, like foods and textiles, to capital intensive products, like electronics and high-tech capital goods.  However, this economic progression has fundamentally altered the beneficial relationship the region enjoyed with its more advanced trading partners, during the period of initial growth and development.  This paper investigates the changes that have occurred in the trade patterns of the United States, the European Community and Japan with the developing countries of East Asia between 1980 and 1992.  The observed changes in the historical patterns are explained and justified.  Furthermore, the impact of the maturation process on future devleopment in East Asia is investigated.

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Paper Number
97-039
Year
1997