The Newly Industrializing Economies as Models for Establishing a Highly Competitive Industrial Base — What Lessons to Learn?
One school of thought, which may be labelled the “liberal school”, maintains that the success of Singapore, Hong Kong, Taiwan and Korea (Rep.) is mainly due to the fact that these economies have, by and large, “got their prices right”, i.e. they maintained a competitive exchange rate, relied on low levels of effective protection, emphasized competition on domestic markets, implemented policies that did not, in aggregate, discriminate between broad groups of industrial activity, and reduced the role of government as the economy became more complex.1
KeywordsPetroleum Income Expense Production Line Lution
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