The “hidden” side of the “flying-geese” catch-up model: Japan’s dirigiste institutional setup and a deepening financial morass

Abstract

The author owes to Hugh Patrick of Columbia University for his meticulous, detailed and valuable comments, which have led to many improvements in this article-and is also appreciative of the constructive suggestions and encouragement received from an anonymous referee. Any remaining errors are solely of the author. This article was drafted while he was a visiting fellow at the East-West Center, Honolulu, Hawaii. An early version was presented at a seminar held at the Center. He is indebted to seminar participants, especially Dieter Ernst, theme leader, for their comments.

Economic Cycles, Crises, and the Global Periphery

“…and later China, Thailand, and Malaysia, in which the role of foreign capital and export sector had already become fundamentally different, allowed many Japanese and foreign scientists to expand and modernize Akamatsu's paradigm. They included the factors of FDI and TNC in their analyses and demonstrated in what way the technological and fi nancial transfers promote economic progress in developing countries (Kojima, 2000 ;Ozawa, 1992Ozawa, , 2001Ozawa, , 2005Ozawa, , 2009Ozawa, , 2010Shinohara, 1982 ; see also Ginzburg & Simonazzi, 2005 ;Ito, 2001 ;Korhonen, 1998 ;Kwan, 1994 ;Yamazawa, 1990 ). world and the weakness or strength of "national capital" (Bornschier & Chase-Dunn, 1985 ;Tausch, 2010 ).…”

Great Divergence and Great Convergence

“…and later China, Thailand, and Malaysia, in which the role of foreign capital and export sector had already become fundamentally different, allowed many Japanese and foreign scientists to expand and modernize Akamatsu's paradigm. They included the factors of FDI and TNC in their analyses and demonstrated in what way the technological and fi nancial transfers promote economic progress in developing countries (Shinohara 1982 ;Kojima 2000 ;Ozawa 1992Ozawa , 2001Ozawa , 2005Ozawa , 2009 ; see also Ginzburg and Simonazzi 2005 ;Ito 2001 ;Korhonen 1998 ;Kwan 1994 ;Yamazawa 1990 ).…”

“…This constitutes a basis for dynamic comparative advantages, and the countries within a hierarchy of countries can interact with each other in a complementary and mutually augmenting way so that they can benefi t from the 'economies of hierarchical concatenation'" (Ozawa 2001 ). Such economies are analogous to the effect that a gaggle of 25 fl ying geese can achieve a "70 per cent-range energy saving over a bird fl ying solo" thanks to the "wingtip vortex" and "upwash/upcurrent" mutually created by fl ying together (Gedney 1982 ).…”

China and India's Growth Surge: Is it a curse or blessing for Africa? The Case of Manufactured Exports

“…A theoretical framework that helps to see this is what is called the ‘flying‐geese theorem’. The ‘flying‐geese pattern of development’ (FG theorem henceforth) that was originally developed by the Japanese researchers Kaname Akamatsu in the 1930s (Akamatsu, 1935, 1937; cited in: Kojima, 2000) was popularized in 1961 in articles written in English (see for example, Kojima, 2000; Ozawa, 2001, Cutler et al, 2003 among others). Kojima (2000) offers a comprehensive review of the FG model.…”