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Productivity, Competitiveness and Incomes in Asia

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Productivity, Competitiveness and Incomes in Asia

An Evolutionary Theory of International Trade

9781843765851 Edward Elgar Publishing
Hans-Peter Brunner, Asian Development Bank, The Philippines and Peter M. Allen, Professor of Evolutionary Complex Systems, School of Management, Cranfield University, UK
Publication Date: 2005 ISBN: 978 1 84376 585 1 Extent: 136 pp
The authors of this book link productivity change, trade competitiveness, networks of interaction and cooperation and income growth in developing Asian countries with the complex evolutionary processes of economic development and international trade. They take an innovative approach to simulating the complex micro-dynamics of competitiveness in order to distinguish those trade-related microeconomic dynamics and institutional reforms vital to leading countries out of institutional and poverty traps.

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The authors of this book link productivity change, trade competitiveness, networks of interaction and cooperation and income growth in developing Asian countries with the complex evolutionary processes of economic development and international trade. They take an innovative approach to simulating the complex micro-dynamics of competitiveness in order to distinguish those trade-related microeconomic dynamics and institutional reforms vital to leading countries out of institutional and poverty traps.

Real competitiveness changes in six countries (Bangladesh, India, Indonesia, Nepal, Pakistan and Thailand) are measured from 1991 to 2000 with detailed international export unit value comparisons, to detect structural changes towards technology and knowledge intensive goods in trade patterns. No significant structural change was detected in the six countries during that period. Evolutionary trade theory is presented in two models and is calibrated with transaction and trade data from West Bengal and Nepal. These reveal that lower transport costs – resulting from investment in transport and institutional reforms related to the investment and trade environment – result initially in small productivity differences that can be amplified in a non-linear evolutionary system and eventually lead to a spatial restructuring of the system, and to a structural change in the trade patterns. The models in this path-breaking book can be used to explore the impact of a variety of interventions and policies.

Productivity, Competitiveness and Incomes in Asia will be of interest to academics and researchers in Asian Studies, industrial economics, evolutionary economics and international business development. The book will also appeal to policy makers responsible for economic growth.
Contents
Contents: 1. Introduction 2. Violating Traditional Trade Theory, and the Quality Dynamics of Real Competitiveness 3. The Genealogy of Trade Theories, and the Connections of Trade 4. Non-Equilibrium, Spatial Models 5. An Application in West Bengal 6. An Application to Nepal – Impacts from Different Scenarios of Economic Development 7. Trade with Productivity Spill-over, Evolutionary Trade Theory, and Institutional Protection of Productivity References Index
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