The ‘Flying-Geese’ Theory of Tandem Growth and Regional Agglomeration
New Horizons in International Business series
and acknowledgements This book is a sequel to Institutions, Industrial Upgrading, and Economic Performance in Japan: The ‘Flying-Geese’ Paradigm of Catch-up Growth (Edward Elgar, 2005; paperback edition, 2006). In that book, I examined how postwar Japan succeeded in catching up with the advanced West by upgrading its industrial structure through emulative learning. It is a story of great transformation in which a war-devastated Japan was reconstructed and emerged as the world’s second largest economy over as short a span as less than three decades. Analysis was focused on the process of catch-up growth in that particular nation, Japan. By contrast, this book looks at Asia as a whole (and as the basic unit of analysis) and examines interactive/emulative growth between the US (the lead goose) and the region’s catching-up economies – and among the latter themselves. It explores how emulative learning has spread to other Asian economies that followed in Japan’s tracks. But Japan itself has been a great beneficiary of US-led global capitalism, especially during the Cold War. In a nutshell, the present book tells the story of how a cohort of Asian countries led by the US has advanced together, though in a staggered fashion, in structural upgrading and economic growth. No economic system is perfect – that is, there is no first-best system. It always has advantages and drawbacks, boons and banes. For the system to prevail, however, the positive ought to be greater than the negative over the long haul, if not in the short run. It is...