ABSTRACT
The emergence of the Asian newly industrialized economies (NIE) as major exporters of more mature consumer products to the industrial countries has also had a significant influence on international trading patterns. This chapter examines extent of technological dependence of developing countries, technology transfer issues, highlighting the numerous constraints faced by the developing countries in their search for appropriate policies to upgrade their domestic technological capabilities. It deals with a discussion on economic globalization process in the world economy and its impact on the developing countries, with particular emphasis on changing trends in investment flows among countries of the East Asian region, with Japan playing a major role as the NIEs provide the back-up role. The changing investment flows will invariably have important repercussions on the industrialization process itself as well as the technology acquisition capabilities of developing countries to the region.
