-
- Table of Contents
-
- Introduction. 3
- Discussion. 3
- Question 1. 3
- Economic Growth & economic development. 3
- Difference of Economic Growth & economic development. 4
- Similarities of Economic Growth & economic development. 5
- Macro-economic indicators. 5
- Financial Crisis. 6
- Question 2. 7
- Gross Domestic Product. 7
- Component. 8
- Methods. 9
- Question 3. 10
- Free market Economic policy. 10
- Conclusion. 12
- References. 13
- Introduction
of Asian Tigers and Economic Growth
-
- The aim and objective of this report is briefly
explained the given three question which is related to the Case study “Asian
Tiger Development”. As the Asian Tiger is also known as the Asian Dragon which
is used to developed the economics of the Taiwan, Singapore Hong Kong and South
Korea. For maintaining the high growth these area are notable as well as also
has the rapid industrialization among the 1960s and 1990. Here case study is given and the objective is
to fulfill all the requirements.
- Discussion
of Asian Tigers and Economic Growth
- Now in this there are three question given;
so in detailed explained these three questions. Whereas in the first question
the economic development as well as economic growth of the Asian Tiger is
explained , and then the Macro-economic indicators of this case study of Asian
Tigers is also elaborated. Then in the 2nd question, which is
related to the Gross domestic product, then given the appropriate data and
figure of the GDP regarding to the case study of Asian Tigers. And at last the third
question free market economic policy of the Asian tiger.
- Question 1
- a). Explain
the difference and similarities between the economic growth and economic
development highlighting the aspects indication Asia tiger Development with
appropriate illustrations form case context
- Economic Growth
& economic development
- In spite of economic growth in Asian Tiger Development,
there are some other factors that growing sharply in different parts of the
world such as job and income inequality.
Income inequality is single but the greatest threat to the social
instability of the world. The
- The Case study also considered contradictory
development which related to increasing economic growth and economic development.
Two schemes are considered in different demographic groups. In the first
scheme, the increasing gap is measured for the mean income of participants in
the segment of knowledge-intensive business services. The evaluation is related
to increase or decrease of residual inequality in the economy due to
technological development. On the other hand, the second segment considers the
growth of knowledge-intensive business services to identify group gaps and
redistribution of income at National and gender background. The Case study was
conducted to identify the Asian Tiger Development and how it works in the
economic development of the world (Ivic & et al, 2015). The economic development
of Asian tiger is considered for business process, valuable economic
development, and digital inequality, streaming of national information
infrastructure, language. The good thing about Asian Tiger is that with their
presence, the developing world can also experience economic development. The Asian
Tiger has been making its mark with regards to economic development. In terms
of generalization, UNESCO classifies as a middle-income country and different
levels of economic development are considered corresponding to the education
rate. Barriers and constraints in the building of Asian Tiger capabilities in
the development of the country (Maipose , 20018).
- Difference of
Economic Growth & economic development
- Economic Growth
|
- Economic Development
|
- It increase the value of real output goods
and services in the Asian Tiger.
|
- It is not only refers the Economic growth
but also has the progressive changes
|
- Related To
|
- It is related with the developed countries
|
- It is related with the underdeveloped
countries and developing countries
|
- Scope
|
- Single dimensional and narrow measure
|
- Multi-dimensional phenomenon and whole
measure
|
- Focused on
|
- On the income of the people of Asian tiger
|
- On the improvement of living standards of
people of Asian tiger
|
- Government Support
|
- No not required any government support
|
- Highly required government supports (Radcliffe,
2017)
|
- Similarities
of Economic Growth & economic development
- ·
The
Economic growth refers the Quantitative changes thus
- ·
Economic
development refers the qualitative changes.
- ·
Economic growth refers to an increase
over time in a country`s
- ·
Development refers to growth of human capital indexes (Terk, 2014)
- Discuss
any Four Macro-economic indicators with the detailed illustration with respect
to indicator from Case study?
- Macro-economic
indicators of Asian Tigers and Economic Growth
- It is currently broadly acknowledged that a macroeconomic
structure is fundamental however not adequate for Economic development. The macroeconomic
indicator of the Asian Tiger is suggested the report of World bank for the
development policies. Now the macroeconomic environment creation is stable
which is also founded upon the Asian miracle that was built. The Asian Tiger for
every for states has managed the different degree for success, and three
variable like;
- ·
Exchange
rates
- ·
External
debt
- ·
Budget
deflects
- In the exchange rates, this serves as the
indicators for the ability of government which is also managed the economy of
the Asian Tigers. Every Asian Tiger budget deflects which is kept in the limits
of the financial which is not destabilizing for the macro-economics. In particular
South Korea has deficit which is lower than the OECD average of 1980s. Since there are nothing more than bad for the
exchanges rates, a government which is creating high exchange rates is an
administration where the control is lost. . All report form the Asian Tiger government
that they go for low rates of inflations, and the macroeconomic indicators in
any medium or high exchange economy could, thus be relied upon to change. Although
there economic indicators that has the
exchange rates and stays at moderate
levels for delayed periods finance operators in a high or medium exchange of
economy need to anticipate an assault regularly numerous assaults at same point
for inflations rates . Then the non-existence and the external debts for the
Hong Kong, Taiwan, as well a Singapore which did not pirate form the abroad. While South Korea has the exception to debt
the ratio of GNP which is quiet high in the 1980-1985 period, and it is also
sustained through the high level of countries exports (Fischer, 2000). In a Four Asian Tiger country rates of
exchange had been different from long haul fixed rate systems to fixed-however
movable rate systems by an infrequent immerse depreciation of administered scanning
rate systems. Its dynamic rates of exchanges executives enabled Asian Tiger
economies to escape conversion scale gratefulness as well as keep up steady
genuine rates of exchange.
- Financial Crisis of
Asian Tigers and Economic Growth
- In a 1997 Tiger economies encountered a
mishap Asian financial crisis. Hong Kong went under extreme theoretical beatings
against its securities exchange and finance requiring outstanding market
mediations through a state of Monetary Authority Hong Kong. South Korea was hit
a firmest as its outside obligation loads expand bringing about its finance
falling among 35–50%.By a start of 1997, a financial exchange in Singapore, South
Korea ,Hong Kong, as well as additionally experiential misfortunes of at any
rate 60% in dollar terms. Taiwan as well as Singapore was abstemiously solid. An
Asian Tigers recouped from a 1997 finance market than different nations because
of different finance favorable circumstances involving their high investment
funds rate (aside from South Korea) as well as their receptiveness to exchange rates
(Megaravalli & et al, 2018)
- Question 2
- Discuss
Gross Domestic Product, highlighting the component and methods of calculating
GDP.
- Gross Domestic
Product of Asian Tigers and Economic Growth
- The GDP of the countries are helping the
countries to analyze the gross value as well as the related economic
activities. With the effective cost of material, countries are analyzing the
total product and the productive factors that how effectiveness can be bought
in an economy.
- In 2018, an associated economy of a “Asian
Tigers development” established 3.46% of a world's economy by a
complete (GDP) Gross Domestic Product of 2,932 billion US dollars. In South Korea,
Hong Kong, Taiwan and Singapore, the GDP was worth 361.1 billion, 363.03 billion, 589.39 billion US dollars and 1,619.42
billion separately in 2018, which spoke to0.426%, 0.428%, , 0.696% and 1.911%
of the world economy. Organized, their associated economy outperformed the UK GDP
of 3.34% of a world's economy sometime in the of mid-2010s.
- The concepts related to GDP or Gross domestic
product also concerned effectively in the case study, that what monetary
measure as well as the final goods and services helping the countries to set
the GDP, there are poor countries that have lowest GDP estimates. Gross
Domestic Product (GDP) plays an important indicator to gauge a country’s
economy by determining which Asian Tiger will best fit to produce products. It
measures the total dollar figure of a country’s output and as such is usually
used to measure its productivity in conjunction with other factors such as
employment rate.
- Component
of Asian Tigers and Economic Growth
- In the Bureau of the Economic Analysis as
well as the below given bar figure of the GDP components, we calculate during a
last two years, Korea GDP is about the 361.1
billion. It is grown the $19 trillion of the first Quarter in 2017. Suppose
the various component of the GDP we determined the Personal Consumptions
expenditure is the highest around about the $12 trillion that is followed
through the consumptions of government expenditures as well as the gross
investment, or the gross private domestic investments (Jain, 2014).
- Most shocking data is about net exports of
the services as well as the Goods. It is gradually negative, where a gap among
the exports along with imports has widened. During the first quarter of the
2017 gap is increased over the $562 billion.
However the economy of the Asian tiger in a grip of the foreign exchange
crisis.
- ·
UK is
currently in the period of the, high growth, high GDP (gross domestic product)
- ·
GDP is
distinguishing through the sum of investment, consumption expenditure, next
export as well as the government purchases.
- ·
The total
sums of the variables have risen over the time, by indicating the higher GDP.
- In the current business cycle, the analyses
of the UK in 2009 in the growth phase. Economy growth is growing at 2-3% by the
stocks that enter in the bull market. In this phase we can say that, economy is
in the peak due to take sometimes for an economy of the fully recovered from
the 2008 financial crisis when a rate of inflation will be up (Avalos, 2013).
- Methods
of Asian Tigers and Economic Growth
- There are three methods to measure the GDP as
shown in the below figure;
- Figure: Methods to measure GDP
- In the income method when all the factors
adds the payments then it calculates the GDP;
- Whereas the formula for the income approach
is given below;
- Whereas;
is the profit which Asian Tigers make - Wage + total labor provided –returns to labor
- Rental arte of capital * amount of provided capital (Econ101help.com, 2019)
- Question 3
- Discuss
free market Economic policy, highlighting the extent to which Asian Tiger have
benefited from the Economic freedom of their countries in a bid to attain a
high export drive.
- Free market
Economic policy of Asian Tigers and Economic
Growth
- Taiwan Singapore and the Republic of Korea
(South Korea) as having had large populations and a gap to supply required
fresh produce for consumption. Taiwan strong population growth, paired with
their rising per capita incomes will mean a likely continued demand for
agricultural product (EFIC, 2015). Along with this, both Singapore and South
Korea have free trade agreements now in force, allowing for an expected
increase in opportunities for fruit and vegetable markets (EFIC, 2015) .
- To obtain the high export concept of the
economic freedom is always used for the economic profession which is also
connected by the Chicago School, and an index is measures an extent that dominate
the production of private business which is also legally protected as well as
it is also allowed for peruse of the goals without the interference of public. Economic freedom For Asian tiger gives the
following measures (Paldam, 2001);
- ·
Higher
Growth
- ·
Higher
GDP
- Focused on the learning that is gained in the
economic subject, it is known that there are effective policing by the
government, in order to increase the practices related to the economic growth.
However, the case study provides the great learning as there is information
regarding the fiscal policy as well as the government spending has how occupied
and marketers are spending and influence the economy. It is analyzed that every
country is focused on the healthy economic growth so that there could be the increase
in the growth, with the fashion of individual lawmakers there are countries
that are focused on the national economic priorities. Moreover, it is known
that fiscal policies are created so that there could be content economic growth
and so that government gained the tax and government either spends with the
help of the consumers' hands. The case study also focuses on the Politicians
debate that how and why they prefer tax cuts as well as the balanced budget.
There are countries with the lower tax revenue and it is analyzed that during
economic booms, the taxes provide the income to the country, that helps the
given to get straightened. The funds the government helps the government to
spend for the benefit of the people, the tax help to pay the government
salaries and there is also the economic growth.
- Conclusion
of Asian Tigers and Economic Growth
- Summing up all the discussion Case study is
about the Economic growth and the Economic development, of the Asian Tiger.
Whereas the economic growth is enduring increase the production volume in Asian
Tiger and GDP growth thus the economic development is not, because it does only
qualitative and quantitative changes. The good thing about Asian Tiger is that
with their presence, the developing world can also experience economic
development. In this case study there are three sections; Introduction, Discussion
and the conclusion. In the first section introduction explained about the Asian
Tigers. These entire questions are well elaborated according to the proper requirements.
The gross domestic products and the free market policy of Asian Tiger sis also
explained as shown in the above discussion.
-
- References of Asian Tigers and Economic Growth
Avalos, B. (2013). The Industry oriented Asian
Tigers and the Natural Resource based Pacific Alliance Economic Growth Models.
Munich Personal RePEc Archive.
Econ101help.com. (2019). Three
different ways to calculate GDP. Retrieved from
https://econ101help.com/three-different-ways-to-calculate-gdp/
Fischer, S. (2000). THE ROLE OF
MACROECONOMIC FACFORS IN GROWTH. NBER WORKING PAPER SERIES.
Ivic, M., & et al. (2015). ECONOMIC
GROWTH AND DEVELOPMENT. (JPMNT) Journal of Process Management – New
Technologies, International, 3(2).
Jain, S. (2014, May 7). Overview: The
four major components used for calculating the GDP. Retrieved from
https://finance.yahoo.com/news/overview-four-major-components-used-170005741.html
Maipose , G. S. (20018). Institutional
Dynamics of Sustained Rapid Economic Growth with Limited Impact onPoverty
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https://www.thegreatcoursesdaily.com/asian-tigers-economics-asian-nations/
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