1. Asian Miracles, or Not?
J.D. Han

2. 1. Criticisms of Asian Miracles
Paul Krugman
Growth is due to increased factor intensity, or increases in K, and L input, and Not much due to Technical Innovation; According to Neoclassical Theory, there will be convergence, and the East Asian growth is not sustainable.
*Of course: Krugman does not think much of Social Captial, or Human Capital as a separate factor for growth

3. * Evidence:
Growth Accounting applied to East Asia does not show Technology as an Important Factor
*Refer to my note on Growth Accounting
In the East Asian setting; but GA is limited and incomplete.
Yes, in Neo-classical model, growth slows down without technical innovation.
However, in Endogenous Growth Model, even if technology is not an important factor, it does not mean that the growth will slow down.

4. 2) Asian (Financial) Crisis
Corruption at all levels of society
Lack of Transparency - Opaqueness of Governance
Vulnerable to ‘Herding’

5. *Reflection Opaqueness also exists in Western Economies
Transparency may not be the only way to Information Efficiency
: “Dominicans and Jews Need not Apply” in Cents and Non-Senses by J. Carr
Transparency may not be culturally possible
: “Zen”(禅）； ”From Heart to Heart”(以心传心）

6. 3) Japan’ Long Term Recession
What were the causes of the Japanese Economic Recession since the 1990s?
-Liquidity Trap（Krugman), or simply ‘Hollowing of the Domestic Economy(经济 空洞化）?
-Both are due to ‘Grim Prospect of the Economy’ and thus the lack of investment despite a high saving.
-What are the causes for “Hollowing”?
* There is always a possibility of hollowing in East Asia.
Will she be able to rise again so that her economic growth picks up?

7. 4) Flying Geese Model and Problems
(i) What is ‘Flying Geese (雁行） Model?”
Japan as the leader
Korea and Other LDC’s
China

8. (ii) Its bad implications: ‘Northeast Asian Supply Chain’
Flying Geese Model and Processing Economy in East Asia: 'Northeast Asian Supply Chain'

9. 2. East Asian Recovery and
“East Asian Miracles live on” declared by the recent reports by the World Bank;
And there is another really Big Miracle happening in
China,
which is the most baffling and complex