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The 2008 Financial Crisis and the Flying Geese Model

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Abstract

In the twentieth century Japan embarked on an economic developmental path that came to be known as the Flying Geese Model. The geopolitical milieu after the Second World War provided Japan with favourable conditions for rapid economic growth and industrialization. By the 1950s, many had noticed the success of the model and it was subsequently adopted by other East Asian countries. They too enjoyed decades of remarkable economic growth. An important element of the model is growth driven by export to the USA and Europe. As a result of the 2008 financial crisis, the traditional markets of the geese are shrinking. The new situation poses grave challenges to both the existing flying geese economies and latecomer economies which wish to follow the model. East Asian countries are responding to the situation by broadening and deepening their existing economic linkages and developing new ones. This represents a continuation of East Asian regionalism in the wake of the 1997 financial crisis.

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Notes

  1. The goal of the Plaza Accord was to reduce the U.S. dollar exchange rate in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets. The Accord was signed by France, West Germany, Japan, the United States, and the United Kingdom.

  2. This is pointed out by an anonymous reviewer.

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Acknowledgement

The author is grateful to the reviewers for their thoughtful comments.

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  1. East Asian Institute, National University of Singapore, Kent Ridge, Singapore

    Siam-Heng Heng

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Correspondence to Siam-Heng Heng.

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Heng, SH. The 2008 Financial Crisis and the Flying Geese Model. East Asia 27, 381–394 (2010). https://doi.org/10.1007/s12140-010-9128-6

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  • DOI: https://doi.org/10.1007/s12140-010-9128-6

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