ABSTRACT
Previous chapters have established the historical and logical sequence, in which a series of factors, actions, and conditions led to the emergence of the growth pattern and methods, and the rise of the growth system. In this chapter, we will further investigate the operational characteristics of the growth system and the institutional consequences of its prolonged operation. We will particularly focus on the dynamic growth cycles that are universally found with East Asian Growth, and the aging of the institutional setting that supported the growth system in the EAEs. Growth cycles are driven by the constant pursuit of comparative advantage, as explored in Chapter 3, while institutional aging is the accumulative effect of the working of various institutional arrangements, as explored in Chapter 5, in making the pursuit effective. Growth cycles and institutional aging have shaped the general growth pattern of the EAEs, and set the limits for the “life expectancy” of the growth system. To a great extent, they determined the nature of the exit games of the EACs out of the system, and the problems and prospects associated with the ending of East Asian Growth.
