Newly Industrializing Economy of China

Newly Industrializing Economy of China

Introduction

Newly Industrialized Economic countries are those who have a macroeconomic sense and undergoing a rapid economic growth through industrialization. This does makes an effort to create a developed country status but they are somewhere between the developing and the first-world countries. Growth has advanced to the industrial and tertiary sector of civilization where they have surpassed the agricultural civilization (Howe, 2010).

Newly industrialized countries have to struggle a lot to increase their net Gross Domestic Product (GDP) to come up from a developing stage to the developed stage. It is the whole countries role to add into the net GDP of the country by creating trading and commodities for the country and for the other countries (Yao & Yueh, 2006).

Discussion

A newly developing country has to consistently keep on increasing their economic growth so that it can advance from the developing stage to the developed stage. There should be a sustained increase in the GDP by a change in the general population and a certain architectural changes to the economy. A structural enhancement should be made to the growth and the development which may increase the standard of living of the country. Changes to the factors of production are very necessary such as the land, labor, capital and expertise (Yao & Yueh, 2006).

The Newly Industrialized Economies (NIE) has to face many crucial factors to increase the savings ratio more than the countries capital output and population growth. The main factors that affect within the NIE's are the favorable international environment, favorable internal environment, export orientated industrialization and role of the state (Howe, 2010).

An economics point of research says that all of the developing and the developed NIE's come under the globalization. The increase in the integration of national economies and the international division of labor ...