ABSTRACT
The rapid economic development of the newly industrialized countries (NICs) in East Asia has attracted a great deal of attention from all over the world. The distinctive feature of the economic development of the Asian NICs is high dependency on international trade. Since domestic savings in underdeveloped countries may be short of total capital required for development, the utilization of foreign capital can be very important in facilitating and speeding up economic development. Using the most statistics available, the export of goods and non-factor services as a percentage of the gross domestic product was 37% in South Korea, 58% in Taiwan, 107% in Hong Kong and 176% in Singapore. The economic growth of the Asian NICs slowed down in 1985. Exports from other developing countries have gradually become their strong competitor in the international market. Because of the relationship between trade and growth, the rapid increase and structural change of exports will cause a change in the structure of production.
