The paper 'The Flying Geese Theory of Development, Its Development in South East Asia " is a perfect example of a business case study. The flying geese theory of development was applied by Akamatsu Kaname in interpreting the development of the Japanese economy. The theory was developed in the 1930s and explains how a careworn country can be comparatively quick in its progress (He, 2009). The underdeveloped economy adopts labour-intensive techniques in the production of goods and provision of services. The techniques are greatly borrowed from developed countries and applied to underdeveloped countries in order to boost their capacity and compete with the developed economies.
Industries in the underdeveloped economies mainly concentrate on producing for the domestic market and eventually start exporting their products after their industries are strong (Thorbecke & Nissanke, 2010). This cycle is continuously repeated leading to faster development and growth in economic matters. After the first and second world wars, Japan adopted industrial policies which were borrowed from the developed economies. These policies designated some industries as active and others were considered dormant (Thorbecke & Nissanke, 2010).
Active industries received massive support from the government in terms of finances and research whereas the dormant ones were neglected. The government provided less support to the dormant industries because they were losing their comparative advantage, and resolved to move them to the less developed Asian countries (He, 2009). Introduction The projection if this report is to highlight the key theoretical aspects of the flying geese model of development. The theory was developed by Akamatsu Kaname in Japan. The theory is widely known and applied in Japan but it is unfamiliar outside Japan. This is because the Japanese Great East Asian Sphere used the theory to legitimize themselves during the Second World War.
However, the theory was developed in 1932, long before the war (Thorbecke & Nissanke, 2010). The theory is excellent in ensuring the development of economies and is a driving force in the economic relations in Asia. Asian economies have achieved great success in terms of exports and economic growth. The countries have been able to reduce levels of poverty and created competitive economies in the world. The success of Asian economies has been attributed to the flying geese theory that emphasizes on high work ethics, savings, and high investments in human capital and infrastructure (He, 2009). The flying geese model and its roots The flying geese model explains a catch-up process of industrialization in the economies of East Asia.
The flying geese pattern explains the trend of three sectors namely imports, exports and domestic production. Schroppel and Mariko indicate that the sectors resemble “ wedges of flying wild geese chasing each other” when plotted against time (Reid & Gatrell, 2006). The original flying geese model had three aspects of interindustry, interindustry, and intercountry.
The rise and fall of the three aspects led to a cycle that explained the interindustry aspect through the invention of new products in the existing industries. There was an emergence of industries in developing countries, explaining the aspect of interindustry. These industries were heavily borrowed from developed countries with the aim of boosting the existing industries that had weak structures. The new industries brought capital goods and machines to be used in their production processes. The intercountry aspect is explained by the shift of industries from developed countries to the underdeveloped countries.
This was caused by the rise in production costs in developed countries, causing a decline in the number of goods exported (Chen & Morita, 2010).
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