External Constraints and Structural Transitions in East Asian Economies

　　Abstract: Historically, economic growth in East Asia has occurred within a context of imperfect market structures. This weakness has forced East Asia to rely on external forces to realize economic growth. These external forces are both the structural drivers of East Asian economic growth as well as the primary constraint on economic growth within the region. The global financial crisis which began in 2008 foretells a change in the external environment which will prove beneficial to East Asian economies, and which will force East Asia to begin a new round of structural reform and transition. These reforms will correct traditional structural shortcomings of East Asian economies, particularly with respect to markets, and will reduce to the greatest extent possible the negative impacts of external forces on economic growth.

　　Author: Zhao Jianglin is a Research Professor in the Institute of Asia-Pacific Studies of the Chinese Academy of Social Science