Analysis On Exonomic Convergence In East Asia

Economic convergence theory in the 20th century theory of economic growth since the 90s of one of the most popular topics. The core of this theory lies in the effects of different economies or between different regions within a country the difference between the rate of economic growth, to find the causes of this difference. Desire to own the majority of developing countries, rapid economic growth, to become developed countries. Broader East Asian region, the economies there are differences in degree of development; growth rate differences also exist, relatively backward economy of the region's growth rate faster than developed economies. In response to this trend, the convergence theory can give a reasonable explanation. Therefore, this paper studies the convergence of the East Asian region, analysis of the selected elements of economic growth and the role of convergence and corresponding policy recommendations.This paper reviews the neoclassical growth theory and convergence theory development thread and make comments. Proof of concept using the absolute convergence of generalized the existence of convergence in East Asia, pointed out that this conclusion can serve as a basis for further research. Then use conditional convergence neoclassical economic growth, openness, and institutional analysis under the conditions of the three convergence tests of actual performance in East Asia: Under the new system focuses on classical economic growth of the savings rate, population growth, capital and human capital on the convergence of East Asian countries and the role of economic growth; open conditions for foreign trade openness as a proxy variable, analyzes the convergence of foreign trade and economic growth in East Asian countries, the role; system, a combination of factors analyzed the efficiency of government administration, law and the protection of property rights, of credit, labor and business regulation as factors of economic freedom on behalf of the convergence of East Asian countries and economic growth.The empirical analysis shows that:the East Asian countries, there is the phenomenon of convergence. But various factors on the convergence rate in East Asia has a different role:investment and foreign trade in the region play a role in promoting economic growth and contribute significantly to the convergence rate of the region; Although the human capital of the region's economic growth has a positive effect, but greatly slowed down the convergence rate of the region; system factors on the convergence of the East Asian region has played a role in impeding. According to the analysis can draw this conclusion:the broad economic growth in East Asia relied heavily on investment and foreign trade, structural problems are still evident; relatively backward economies of the region's human capital and its chase policies and regulations in the developed economies of the region major obstacle.Based on the above conclusions, the corresponding policy recommendations are:the East Asian economies should strengthen trade and economic links; the economy, especially in relatively backward economies should strengthen human capital investment and construction; improve administrative efficiency, improve the legal environment and strict protection of private property rights, on the effective management of economic affairs. In this paper, conclusions and policy recommendations on economic development in developing countries have a certain self-revelation.