emphasized exports and foreign technology acquisitions (Bhagwati, 1996; Quibria, 2002).
The rapid pace of growth and structural change witnessed over the past three or four
decades in many Asian countries is a distinct feature in recent world economic history
termed the “Asian growth miracle”. Some would argue that growth is pernicious to the
poor while others would believe that a growth tide would raise all boats. For example, rapid
growth of China and India has substantially contributed to poverty reduction (see e.g.
Dollar and Kraay, 2002). This experience is not unique to these two countries and has
certainly been shared by Malaysia.
All this is also consistent with Professor Lim’s Triple C theory where triple C may
represent the domestic, regional and global engines of growth (Lim, 2005). Modern
economies are largely propelled by all the three engines of growth to varying extent. The
most critical is of course the domestic engine. If it malfunctions, the two other engines
would become non-operational though the domestic engine alone would not suffice to
deliver high growth for a country. Each of these engines also has its own circular cumulative
causation. When a country adopts an open door policy, it allows itself access to
regional and global markets that implies an expansion in the demand for its products. It
also allows itself access to regional and global sources of material inputs, foreign technology
and organizational knowledge that lowers its production cost.
emphasized exports and foreign technology acquisitions (Bhagwati, 1996; Quibria, 2002).The rapid pace of growth and structural change witnessed over the past three or fourdecades in many Asian countries is a distinct feature in recent world economic historytermed the “Asian growth miracle”. Some would argue that growth is pernicious to thepoor while others would believe that a growth tide would raise all boats. For example, rapidgrowth of China and India has substantially contributed to poverty reduction (see e.g.Dollar and Kraay, 2002). This experience is not unique to these two countries and hascertainly been shared by Malaysia.All this is also consistent with Professor Lim’s Triple C theory where triple C mayrepresent the domestic, regional and global engines of growth (Lim, 2005). Moderneconomies are largely propelled by all the three engines of growth to varying extent. Themost critical is of course the domestic engine. If it malfunctions, the two other engineswould become non-operational though the domestic engine alone would not suffice todeliver high growth for a country. Each of these engines also has its own circular cumulativecausation. When a country adopts an open door policy, it allows itself access toregional and global markets that implies an expansion in the demand for its products. Italso allows itself access to regional and global sources of material inputs, foreign technologyand organizational knowledge that lowers its production cost.
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