The paper "Role of Government in East Asian Miracle - Singapore and Hong Kong " is a perfect example of a macro & microeconomics case study. Around the world, there are many cases where governments intervene in the economies of their countries. This action is normally prompted by various reasons and it takes place in a mixed economy that is market-oriented or simply a market economy. The objectives targeted in economic intervention may be political or economic and they include the promotion of economic growth, increasing employment, reducing or raising prices, raising wages, increasing profits, promoting equality, addressing failures in the market and managing interest rates and money supply (Gerald 2006, p.
34). In Asian countries, government intervention in a number of economies has resulted in growth while in others it has had negative effects. Independence of some economies from the government has had positive results in certain countries such as China and Malaysia (Dixon 1991, p. 67). In this essay, the role of government intervention in the economic performance of three Asian economies will be discussed in a comparative manner. These countries are Singapore, Hong Kong and Malaysia.
The essay also examines the effect of economic independence in these economies. Finally, state intervention in the economic development of India and China will also be investigated. Singapore and Hong Kong compared Singapore and Hong Kong are two city-states in Asia. Their economies have many major differences depending on the involvement of the government. In Hong Kong, the government has steered clear of intervening in the economy. On the other hand, Singapore has its government involved in its economy and its intervention is strongly felt everywhere (Sarel 1997, p.
154). The economic system of Hong Kong is by many standards free from the control of the government. For a long time, the private sector has received the support of the government so that it can dominate and no restrictions exist on labor, enterprise and capital.
Ezra F. V. (1991), The Four Little Dragons: The Spread of Industrialization in East Asia Cambridge, MA: Harvard University Press.
Hsieh, C. (1998). What explains the Industrial Revolution in East Asia? Evidence from factor markets, Princeton University Woodrow Wilson School of Public And International Affairs Discussion Papers In Economics No. 196, 1-42.
Young, A. (1992). A tale of two cities: Factor accumulation and technical change in Hong Kong and Singapore, NBER Macroeconomic Annual, 13-63.
Sarel, M. (1997). Growth and productivity in ASEAN countries, IMF Working Paper 1997/97
Lawrence J. L. and Jungsoo P. (2003) The Sources of East Asian Economic Growth Revisited, Stanford University and the State University of New York at Buffalo
World Bank, East Asia and Pacific regional office (1994); East Asia’s trade and investment: regional and global gains from liberalization; World Bank.
Zhiqun Z. (2009) Understanding East Asia’s Economic Miracles; Association for Asian Studies
Dixon C. (1991) South East Asia in the global economy; Cambridge University Press
Gerald A. F. (2006) East Asia, Globalization and the new economy; Taylor and Francis
Hiratsuka D. (2008) East Asia’s Economic integration; Progress and benefit Palgrave Macmillan/IDE-JETRO,