The Asian Miracle and the Rise of Demand-Responsive Economies

Gary G. Hamilton and Cheng-shu Kao

in The Market Makers

Published in print February 2011 | ISBN: 9780199590179
Published online May 2011 | e-ISBN: 9780191724893 | DOI:
The Asian Miracle and the Rise of Demand-Responsive Economies

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In this chapter, Gary Hamilton and Cheng-shu Kao demonstrate that the industrialization of East Asia, which started in the late 1960s and which is known as the “Asian Miracle,” is most accurately seen as the widespread development of supplier markets for mostly American brand-name merchandisers and retailers. Asia’s export-driven industrialization quickly led to the development of “demand-responsive economies.” Using Taiwan as an example, the authors show, step by step and industry by industry, how, through the actions of big buyers, Asian economies in the 1970s and 1980s became organized backwards from the development of consumer markets in the USA to the creation of supplier markets for consumer goods in East Asia. Using extensive interview data from Taiwanese businesspeople, the authors present a number of case studies showing the process of economic integration (and disintegration) around the development of supplier markets. Such supply-chain-driven economies are the essence of the demand-responsive economies that emerged in East Asia in the second half of the twentieth century and that are characteristic of economies around the world today.

Keywords: demand-responsive economies; supplier markets; the Asian miracle; Asian industrialization; Taiwan; retail revolution; trading companies; demand-responsive manufacturing

Chapter.  12890 words.  Illustrated.

Subjects: International Business

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