Exploring the Historical Roots of Eastern Asia's Post-War Catch-Up Growth: A Trade Perspective, 1906–1999

ABSTRACT

This article relates the postwar economic transition in Eastern Asia to long-run developments in international trade (1906–1999). The role of foreign trade in transition growth is analysed by applying structural economic theory. A trade perspective allows for studying economic transition as a long-term phenomenon revealing a process of structural change in detail, and positioning economic development in a wider context of phases of globalization and de-globalization (1850–1013 and from the 1950s onwards) as well as de-globalization (1914–1950). Trade developments in Eastern Asia are compared with the Latin American record in foreign trade. The article argues that the expansion of trade in the Asian region during the era of globalization backlash (1914–1950) initiated important structural changes and a new international division of labour facilitating post-war rapid economic growth.

Keywords:

• International trade
• Eastern Asia
• transition growth
• globalization

JEL CLASSIFICATIONS:

• N15
• N75

Notes

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1. Unless stated otherwise we include the following countries in Eastern Asia: Japan, China, Taiwan, South Korea, Hong Kong, Singapore, Vietnam, Myanmar, Laos, Cambodia, Thailand, Malaysia, Indonesia, the Philippines and India. We exclude Nepal, Bhutan, Pakistan, Iran, the Middle East countries, the former USSR countries, North Korea and Mongolia.

2. Admittedly the Korean growth rate is pronounced due to its low initial level, but its expansion is outstanding by any measure anyway.

3. It is just because the local governments kept recording trade with mainland Japan that the reconstruction of trade presented here has been possible.