Long Run Economic Success Factors of the “Asian Tigers”

Abstract

The purpose of this research study was to establish long run factors responsible for the economic success of the “Asian tigers”. The East Asian model of development has been debated since the 1980’s. There is, therefore, a need to establish a long run relationship that explains the factors responsible for the economic success of these countries which can be emulated by developing nations through their economic policies as they strive towards progressing economically. The study used a longitudinal panel series research design and annual secondary data on Gross Domestic Product, exports, imports, age dependency ratio and population growth from 1962 to 2018. Both descriptive and inferential statistics were used to analyze data. Panel Dynamic Ordinary Least Square Method was used to test the effect of independent variables (exports, imports, age dependency ratio and population growth) on dependent variable i.e., Economic Growth. The results indicated that there’s a positive relationship between (exports, imports, age dependency ratio and population growth) on dependent variable i.e. economic growth. The study recommended that; developing countries import goods and services that cannot be produced at home and those that are more costly to produce at home than to import from foreign countries, focus on boosting the export sector in terms of strengthening value addition to the exported goods and services, encourage compulsory saving policies for both private and government employees to enable them use their savings to earn a leaving during periods of retirement, work towards having productive populations in terms of promoting and supporting research and innovations, supporting talent like sports, commit themselves towards ensuring that economic policy and politics work hand in hard obtain effective results in terms of their economic success.