A research study report submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology

Research Studies Project Report (M. Eng.) - Asian Institute of Technology, 1987

Sustained economic growth of newly industrializing countries and middle-income southeast Asian countries over the past two decades has been impressive, compared with the rest of the world. If we can analyse the determinant factors of their economic growth, then we should be able to chart economic growth paths of contemporary developing countries. This research is a comparative study on the macroeconomic determinants of economic growth in eight Asian countries. The effects of external economic shocks and policy responses to these shocks are apparent in the national income and product accounts because they present an overall picture of the level and rate of change in a nation' s economic activity. This study has screened the national income and product accounts of selected countries by means of the predetermined macroeconomic indicators. Thus, the determinants of their economic growth have been captured. The findings of this macroeconomic analysis indicate that openness of their economies, export promotion, negative import substitution, growth of investment, and structural changes in economic activities have positively affected economic growth. On the other hand, factors such as a dependence on agriculture, the low productivity of agriculture, government-introduced market distortions and investment in inefficient industries have adversely affected their economies.