Trade Liberalization in Asian Newly Industrialized Countries

Document Type

Article

Publication Date

1-1-1991

Publication Title

International Trade Journal

First Page

471

Last Page

490

DOI

http://dx.doi.org/10.1080/08853909108523725

Abstract

Singapore, South Korea, and Taiwan are often perceived as having achieved similar trade patterns; nevertheless, their trade policies and patterns differ in fundamental respects. In this study, three models are considered and different aspects of the trade liberalization policies of these three countries are highlighted. The model of South Korea underscores the significance of product market concentration in restraining real wage growth and contributing to income inequality. The model of Singapore highlights the role of foreign investment in producing manufactured goods for export and in raising real wages. The factor proportions model of a labor-abundant economy adequately describes the Taiwanese liberalization. The model's predictions of rising real wages and no monopoly profits are consistent with Taiwan's declining income inequality.

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Version of record can be found through Taylor and Francis.

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