| Publisher | Congressional Budget Office | ||
|---|---|---|---|
| Format | 2.5MB PDF | Date added | 01 Aug 2003 |
| Topics | Performance Budgeting and Management | ||
| Downloads | 103 | ||
Many economist and policymakers believe that international trade played an important role in the economic growth miracles of East Asia, but there is no consensus on the precise way trade helped. However, narrative accounts give the impression that an eminent feature of the growth miracles was a move toward producing goods that higher-income countries produced, adopting the better technologies and methods used in these countries. These goods were not always demanded much in the domestic markets of the newly industrializing East Asian countries, because of lower aggregate income and smaller share of those goods in domestic demand. International trade gave those countries access to larger markets, which enabled their producers to adopt the better technologies even if domestic demand did not justify fixed costs.
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