An Analysis on Industry Diversification Patterns of Emerging and Developing Economies in East Asia (동아시아지역 개발도상국, 저개발국 수출상품의 다각화 패턴 분석)

Wonsub Eum (엄원섭); Jeong-Dong Lee (이정동); Yunyoung Kim (김윤영); SHIN, Ki Yoon (신기윤); Kang, Taewon (강태원)

An Analysis on Industry Diversification Patterns of Emerging and Developing Economies in East Asia

Asia Review
Abbr : SNUACAR
2022, 12(3), pp.153~178
Publisher : 아시아연구소
Research Area : Social Science > Social Science in general
Received : June 15, 2022
Accepted : November 30, 2022
Published : December 31, 2022

Wonsub Eum ¹, Jeong-Dong Lee ², Yunyoung Kim ³, SHIN, Ki Yoon ⁴, Kang, Taewon ⁵

¹기타쿠슈시립대학(The University of Kitakyushu)
²서울대학교
³국토교통과학기술진흥원
⁴과학기술정책연구원
⁵충남대학교

Accredited

ABSTRACT

This study aims to investigate the relationship between types of export product diversification and economic growth, by analyzing economic development of 16 middle-income countries in East Asia. Specifically, this study divides the types of export product diversification into path-defying and path-dependent diversifications, identifies the types of middle-income countries in East Asia, and examines how path-defying diversification influences economic growth. To this end, this study presents a new index to express the percentage of countries entering challenging industries using export data from 1962 to 2019. The main results of the analysis show that unlike the traditional comparative advantage theory, path-defying export product diversification had a positive effect on the economic development of Asian countries. Based on the results, this study provides an empirical basis for the path dependence theory, presents a new index for expressing path-defying export product diversification, and suggests that middle income countries need policies that lead to dynamic changes in comparative advantage through path-defying diversification.

KEYWORDS

export product diversification, path-defying export diversification, economic development, developing countries, East Asia

Citation status

* References for papers published after 2023 are currently being built.

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