Description
Research paper topic: Strategies of Industrialization: East-Asian versus Latin-American
experience
In Part I of your research paper, which is a theoretical part, you should
identify main stages of industrial transformation;
define easy import substitution industrialization
further to your definition, explain what is it that typically causes the shortage of
foreign currency in developing countries during their easy ISI phase of
industrialization? Also explain when does a foreign exchange shortage become a
foreign exchange crisis?
also explain – using the quantity theory of money – why increase in Latin
America’s wealth, measured in terms of gold and silver and gems, did not lead to
long-term economic growth and successful industrialization in the region
define easy export substitution industrialization and explain what exactly is being
substituted for what;
elucidate the importance of the easy export substitution industrialization as a means to
absorb labour from less productive sectors, particularly agriculture (you may employ the
Lewis model if needed)
define difficult import substitution industrialization and clarify in what sense do we say
that Latin American countries entered this state “prematurely” while the East Asian
economies entered this stage “maturely”
In Part II of your paper, you are required to choose one developing country from East Asia and
another from Latin America, and
contrast, using relevant literature and data, strategies for industrial development followed
by the more successful East Asian economies and the less prosperous larger Latin
American countries
explain how the East Asian economies were able to avoid unproductive rent-seeking by
industrialists interested in earning above-normal profits who may have wanted to extend
infant industry protection via the payment of bribes to government officials, while the
Latin American economies seemed unable to avoid such costs
elucidate the following: Chile seems to be the only Latin American country that has
experienced the longest period of sustained growth in recent times. What may account for
this phenomenon?
In part III of your paper you are asked to discuss Japanese experience of industrialization. In
particular, you are asked to research the history of Toyota Company and its success in becoming
a major car-exporting firm, and explain what help did Toyota receive from the Japanese
government and how effective was that help. Also, with reference to Japan’s development,
explain what is a relation-based government?
Sample Solution
