Philippine E-Journals

The Economic Performance of Southeast Asia: Growth by Industrial Origin

Grace Edmar Elizar-del Prado

 

Abstract:

What explains economic growth in Southeast Asia? The region’s growth rate has generally varied very widely. Using the country’s specific base years and local currency, the time series results revealed that Myanmar grows the fastest and is to double production capabilities in only two years. Driven primarily by agriculture, garments, construction and tourism sectors Cambodia’s growth doubles in two years as well. Lao People’s Democratic Republic, a once centrally planned economy, doubles in three years. Doi Moi Reforms take Vietnam 10 years to realize fully development plans while Indonesia’s remarkable growth of 11.78% takes the country only six years to grow two folds. Philippines and Thailand need to wait 19 and 16 years respectively. Brunei Darussalam, Malaysia and Singapore though grow slowly, dominate welfare satisfaction indexes as governments continue to implement people centered policies. Overall, the manufacturing sector is largely fueling growth, supported heavily by construction, trade, public administration and other sectors. Hence, massive production and international trading are required to ensure growth. Heavy investments on construction, telecommunications, and electronics are essential as well. Behind all these, rests the effective capabilities of the public administration sector to manage efficiently the financial servicing and gigantic active trading of Southeast Asian countries.